Answer (B) is correct . In uniform delivered pricing, the company charges the same price, inclusive of shipping costs, to all customers regardless of their location. This price is the company’s average actual freight cost. Thus, both nearby and distant customers are charged the same amount. This policy is easy to administer, permits the company to advertise one price nationwide, and facilitates marketing to faraway customers.
Answer (A) is incorrect because In freight absorption pricing, the selling company absorbs all or part of the actual freight charges. Customers are not charged actual delivery costs.
Answer (C) is incorrect because In zone pricing, differential freight charges are set for customers on the basis of their location. Customers are not charged actual average freight costs.
Answer (D) is incorrect because In FOB-origin pricing, each customer pays its actual freight costs.
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