Asked by Pablo Porcayo on May 09, 2024
Verified
If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are
A) n/30
B) FOB shipping point
C) FOB destination
D) consigned
FOB Shipping Point
A shipping term indicating that the buyer assumes ownership and risk of loss of goods at the point of origin, and is responsible for freight costs.
Title
A legal term referring to the official right to own or possess property.
- Acquire knowledge on the effect of freight conditions and title transfer on inventory-related costs.
Verified Answer
JB
Jeremiah BergoniaMay 12, 2024
Final Answer :
B
Explanation :
FOB stands for "free on board" and refers to the point at which ownership and responsibility of the goods transfer from the seller to the buyer. In FOB shipping point, ownership and responsibility transfer when the goods are shipped, which means the buyer assumes all shipping costs and risks.
Learning Objectives
- Acquire knowledge on the effect of freight conditions and title transfer on inventory-related costs.