Asked by Courtnie Marie on Jul 23, 2024
Verified
Explain the difference between F.O.B. shipping point and F.O.B. destination.
F.O.B. Shipping Point
A term used in shipping contracts indicating that the buyer takes ownership and responsibility for goods once they leave the seller's premises.
F.O.B. Destination
A shipping term indicating that the seller retains risk and ownership of goods until they are delivered to the buyer's location.
- Differentiate between F.O.B. shipping point and F.O.B. destination.
Verified Answer
JN
Julian NietoJul 27, 2024
Final Answer :
F.O.B. destination means the seller pays or is responsible for the cost of freight to buyer's location or destination. Title to the merchandise changes hands at the buyer's location.
F.O.B. shipping point means the buyer pays or is responsible for the shipping costs from the seller's shipping point to the buyer's location. Title to the merchandise changes hands at the seller's shipping point.
F.O.B. shipping point means the buyer pays or is responsible for the shipping costs from the seller's shipping point to the buyer's location. Title to the merchandise changes hands at the seller's shipping point.
Learning Objectives
- Differentiate between F.O.B. shipping point and F.O.B. destination.