Asked by Gillian Sanders on Jul 25, 2024
Verified
When the terms of sale are FOB shipping point, the buyer pays the freight charges.
FOB Shipping Point
A term used in shipping agreements indicating that the buyer is responsible for the cost and liability of goods during transportation once they are shipped.
Freight Charges
Freight Charges are costs incurred in transporting goods from one place to another, often included as part of the cost of goods sold or inventory for businesses.
- Understand the terms of sale and their impact on freight charges and ownership of goods.
Verified Answer
NM
Natalia MalecAug 01, 2024
Final Answer :
True
Explanation :
FOB shipping point means that the buyer takes ownership of the goods and pays for the shipping once the goods are picked up by the carrier at the seller's location.
Learning Objectives
- Understand the terms of sale and their impact on freight charges and ownership of goods.