Which of the Following Statements About Geographical Adjustments to Price

question 384

Multiple Choice

Which of the following statements about geographical adjustments to price is most accurate?

• A)In FOB origin pricing, the seller selects the mode of transportation.
• B)In FOB with freight-allowed pricing, the seller subtracts the transportation costs from the list price.
• C)Multiple-zone pricing is sometimes referred to as "crazy quilt" pricing.
• D)Basing point pricing seems to have been used in industries where freight expenses are only a minor part of the total cost to the buyer.
• E)Geographical adjustments can be subject government regulation if the firm cannot supply objective data (lists of mountains, rivers, weather conditions, etc.) explaining why those adjustments need to be made.

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