Answer: freight-absorption pricing
Explanation: Freight is simply defined as payment for transportation of goods. In the freight-absorption pricing, the seller pays all or part of the actual shipment charges and does not pass them on to the buyer. Thus, the seller absorbs all or part of the transportation costs based on the reasoning that more sales would decrease average costs which will in turn decrease and more than compensate for transportation costs. It is a form of absorption pricing that is done in order to capture the business thereby ensuring the business maintains profitability over the long-term.