Basing-Point Pricing Refers to

question 76

Multiple Choice

Basing-point pricing refers to

• A) selecting a single geographical location from which the list price for products plus freight expenses are charged to the seller.
• B) selecting one or more geographical locations from which the list price for products plus freight expenses are charged to the seller.
• C) having all buyers pay the same delivered price for the products, regardless of their distance from the seller.
• D) a firm dividing a selling territory into geographic areas or zones and charging the same delivered price to all buyers within the same zone, but charging different prices in different zones depending on distance from the factory or warehouse.
• E) selecting one or more geographical locations from which the list price for products plus freight expenses are charged to the buyer.

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Definitions:

Capital Gain

The profit realized from the sale of a capital asset, such as stock or real estate, when the selling price exceeds the original purchase price.

Term To Maturity

The remaining time until a debt instrument is due for repayment.

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, modified to account for changes in cash flow schedules.

Basis Points

One basis point is equal to 1/100th of 1%, used primarily to denote the change in interest rates, equity indexes, and the yield of fixed-income securities.