Asked by Tyler Lewis on May 21, 2024
Verified
Under a consignment arrangement the
A) consignor has ownership until goods are sold to a customer.
B) consignor has ownership until goods are shipped to the consignee.
C) consignee has ownership when the goods are in the consignee's possession.
D) consigned goods are included in the inventory of the consignee.
Consignment Arrangement
An agreement where goods are placed in the hands of another party to sell, but the ownership remains with the supplier until the goods are sold.
Consignor Ownership
Describes a situation where goods are given to another party (consignee) to sell, but the original party (consignor) retains ownership until the goods are sold.
Consignee
The party or entity that receives goods for sale, storage, or transfer but does not take ownership of those goods until they are sold.
- Appreciate the role of merchandise in transit and consignment agreements in calculating the value of inventory.
Verified Answer
Learning Objectives
- Appreciate the role of merchandise in transit and consignment agreements in calculating the value of inventory.
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