If a manufacturer designates a shipping point from which to calculate all freight charges and charges customers freight from that point (even if the goods were shipped from another location),which type of pricing is the manufacturer using?
A) zone
B) freight absorption
C) basing-point
D) FOB origin

Question

Quizplus · Accepted Answer

The manufacturer is using basing-point pricing, where a designated point is used to calculate all freight charges regardless of where the goods were actually shipped from. This type of pricing is common for heavy or bulky items where freight charges can be a significant portion of the total cost.

If a Manufacturer Designates a Shipping Point from Which to Calculate