Computer Works is a computer accessories manufacturer based in Brazil. All customers in South America pay the same freight charge, $20, when they order products from the company. All customers in North America pay a freight charge of $50. The company's pricing strategy is referred to as pricing.
A) uniform-delivered
B) freight-absorption
C) FOB-origin
D) basing-point
E) zone

Question

Quizplus · Accepted Answer

Zone pricing is when a company sets different prices for different geographic areas, which is what Computer Works is doing by charging different freight rates for South America and North America.

Computer Works Is a Computer Accessories Manufacturer Based in Brazil