_____ is a price tactic that charges freight costs from a given point, regardless of the city from which the goods are shipped
a. Free on board (FOB) origin pricing
b. Zone pricing
c. Uniform delivered pricing
d. Basing-point pricing
ANSWER: d
Basing-point pricing is a price tactic that charges freight costs from a given point, regardless of the city from which the goods are shipped. Freight fees charged when none were actually incurred, called phantom freight, have been declared illegal.
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Babson Sugar, Inc has six processing departments for refining sugar—Affination, Carbonation, Decolorization, Boiling, Recovery, and Packaging
Conversion costs are added evenly throughout each process. Data from August for the Decolorization Department are as follows: Metric Tons Beginning Work-in-Process Inventory 0 Transferred in 12,500 Completed and transferred out to Boiling in August 8,000 Ending Work-in-Process Inventory 4,500 Costs Beginning Work-in-Process Inventory $0 Costs added during August Direct materials 2,500,000 Direct labor 1,200,000 Manufacturing overhead 625,000 Total costs added during August $4,325,000 The ending Work-in-Process Inventory is 100% and 75% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. Compute the cost per equivalent unit for the units transferred to the Boiling process. (Round any intermediate calculations and your final answer to two decimal places.) A) $200.00 per metric ton B) $96.00 per metric ton C) $150.00 per metric ton D) $360.44 per metric ton