Asked by Vaden Mangler on May 06, 2024
Verified
If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as
A) FOB shipping point
B) FOB destination
C) FOB n/30
D) FOB buyer
FOB Shipping Point
A delivery term indicating that the buyer takes ownership and risk for the goods once they are shipped, with FOB meaning "Free On Board".
Freight Costs
The expenses associated with transporting goods from one location to another.
- Understand the ramifications of FOB shipping point and FOB destination terms for freight charge considerations.
Verified Answer
AB
Adrian BravoMay 09, 2024
Final Answer :
A
Explanation :
FOB shipping point means that the buyer is responsible for the freight costs and assumes the risk of loss once the goods leave the seller's premises.
Learning Objectives
- Understand the ramifications of FOB shipping point and FOB destination terms for freight charge considerations.