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),the manufacturer is using _____ pricing.
A) freight absorption
B) uniform delivered
C) zone
D) FOB origin
E) basing-point

Question

Quizplus · Accepted Answer

This is an example of basing-point pricing, where freight charges are calculated from a designated basing point, regardless of where the goods actually ship from.

If a Manufacturer Designates a Shipping Point from Which to Calculate