Which of the Following Statements About Geographical Adjustments to Price

question 381

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 passes on all transportation costs to the buyer.
• C) Multiple-zone pricing is sometimes referred to as "spider web" pricing.
• D) Basing point pricing has been used in industries where freight expenses are a significant part of the total cost to the buyer and products are largely undifferentiated.
• 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.

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Definitions:

Compressed Air

Air that is pressurized and contained under greater pressure than the atmosphere, used in various tools, machines, and for cleaning or inflating purposes.

Bicycle Hand/Foot Pump

A manually operated device used to inflate bicycle tires by pushing air into them through a hose and valve system.

Cardboard Tube

A cylindrical form made of cardboard, often used as a core for winding materials like paper towels, fabric, or as packaging for shipping.

Helium Air Balloon

A balloon filled with helium gas, which is lighter than air, causing the balloon to float.