Ceramics Distributing Co. wants to keep its inventory low. Which of the following is most likely to encourage customers to take over more responsibility for the storage function?

A. specifying invoice terms of 2/10, net 30
B. using zone pricing
C. using F.O.B. shipping-point pricing
D. setting a skimming price
E. offering a noncumulative quantity discount


Answer: E

Business

You might also like to view...

The loss of usefulness because of deterioration from age and wear is called

a. functional depreciation. b. physical depreciation. c. technological depreciation. d. amortization.

Business

If a firm issues common stock in return for services other than from employees, the firm records the transaction at the fair value of the services received if it can more reliably measure this amount. Otherwise, the firm records the transaction at the fair value of the shares issued

Indicate whether the statement is true or false

Business

The Wheeler-Lea Amendment gave the Federal Trade Commission (FTC) the power to issue cease-and-desist orders and levy fines on violators.

Answer the following statement true (T) or false (F)

Business

A project's depreciation expense must be considered when evaluating its incremental operating cash flows because:

A. depreciation represents a tax-deductible cash expense. B. the firm incurs a cash payment equal to the depreciation expense each year. C. depreciation has an impact on the taxes paid by the firm, which is a cash flow. D. depreciation is a sunk cost. E. depreciation is a fixed cash payment that the firm receives each year.

Business