Asked by Katlin Briggs on Jul 15, 2024
Verified
Freight terms of FOB shipping point mean that the
A) seller must debit freight out.
B) buyer must bear the freight costs.
C) goods are placed free on board at the buyer's place of business.
D) seller must bear the freight costs.
FOB Shipping Point
Freight terms indicating that the seller places goods free on board the carrier, and the buyer pays the freight costs.
Freight Costs
The expenses associated with transporting goods from one location to another.
- Explain the concept of legal title and its application in the management of inventory accounts.
Verified Answer
BG
Bhavishya GullapalliJul 16, 2024
Final Answer :
B
Explanation :
FOB shipping point means that the buyer must bear the freight costs. The seller is responsible for the goods until they are delivered to the carrier, but after that, the buyer assumes responsibility for the shipment and must pay for the freight charges.
Learning Objectives
- Explain the concept of legal title and its application in the management of inventory accounts.