Asked by Brooke Cooper on Jul 22, 2024
Verified
The term used when the seller is responsible for the cost of freight is:
A) F.O.B. shipping point.
B) F.O.B. destination.
C) Freight-In.
D) Purchases.
F.O.B. Destination
A shipping term indicating that the seller bears the shipping costs and maintains ownership and responsibility for the goods until they are delivered to the buyer's specified location.
Seller
An individual or entity that provides goods or services to another party in exchange for monetary compensation.
Freight Cost
Expense associated with transporting goods, materials, or merchandise from one location to another, typically incurred by the seller or buyer depending on the agreed terms.
- Understand the terminology associated with shipping and its influence on the cost of freight and the transfer of title.
Verified Answer
NV
Nathalia VelezJul 28, 2024
Final Answer :
B
Explanation :
F.O.B. destination means the seller bears the freight costs and retains ownership until the goods reach the buyer's location, making the seller responsible for the cost of freight.
Learning Objectives
- Understand the terminology associated with shipping and its influence on the cost of freight and the transfer of title.