Which of the Following Statements About Geographical Adjustments to Price

question 216

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 buyer deducts the transportation costs from the list price.
• C) Multiple-zone pricing is sometimes referred to as "spider web" 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 to government regulation if the firm cannot supply objective data (lists of mountains, rivers, weather conditions, etc.) explaining why those adjustments need to be made.

---

Definitions:

Mail Merge

A process of automatically filling in the details in a template document with individual entries from a data source.

Recipient List

A compiled list of email or mail addresses to which messages, newsletters, or marketing materials are sent.

WordArt

A feature in Microsoft Office applications that allows users to create stylized text with special effects.

Shape Fill

The feature in graphic editing and presentation software that allows users to fill a shape with color, gradients, pictures, or textures.