Asked by
Ethan Schock
on Dec 15, 2024Verified
A company placing an order from the Lab Safety Supply catalog is instructed to add $25 to the total cost of the order to pay for shipping regardless of the buyer's location. Which method of shipping does this catalog supplier use?
A) FOB origin pricing
B) multiple-zone pricing
C) freight-absorption pricing
D) single-zone pricing
E) basing-point pricing
Single-Zone Pricing
A pricing strategy where a seller charges the same price for a product or service, regardless of where the buyer is located.
FOB Origin Pricing
A term used in shipping indicating that the buyer takes responsibility for shipping costs and risk of loss from the seller’s location.
Freight-Absorption Pricing
A pricing strategy where the seller absorbs all or part of the freight charges to encourage business in competitive markets or remote locations.
- Recognize various geographic pricing approaches, including Free On Board (FOB) origin pricing, uniform delivered pricing, and multi-zone pricing.
Verified Answer
NM
Learning Objectives
- Recognize various geographic pricing approaches, including Free On Board (FOB) origin pricing, uniform delivered pricing, and multi-zone pricing.