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Critics of FOB Factory Pricing Are Usually in Favor of Uniform

Question 93

Multiple Choice

Critics of FOB factory pricing are usually in favor of uniform delivered pricing because:


A) buyers are already compelled to pay all variable and indirect costs.
B) they believe freight costs should not be charged separately to customers any more than any other single . marketing or production expense.
C) they believe FOB factory pricing should be declared unfair to buyers who are geographically distant from sellers.
D) uniform-delivered pricing requires the seller to absorb all of the freight costs.
E) sellers achieve economies of scale when selling larger items to distant markets.

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