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Which of the Following Is True of FOB-Origin Pricing

Question 12

Multiple Choice

Which of the following is true of FOB-origin pricing?


A) It is a strategy in which the company charges the same price plus freight to all customers.
B) It is a costly option for customers who are located near the company.
C) It charges all customers the freight cost from a base city to the customer location.
D) It is an expensive alternative for customers in distant locations.
E) It is a strategy in which the seller absorbs all or part of the freight charges.

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