Asked by Steph Dutting on Jun 13, 2024
Verified
Who is responsible for the freight cost when the terms are FOB destination?
A) the seller
B) the buyer
C) the ultimate customer
D) either the buyer or the seller
FOB Destination
A shipping term indicating that the seller pays for transportation and is responsible for the goods until they are received by the buyer.
- Interpret the significance of FOB shipping point and FOB destination terms in the context of freight cost implications.
Verified Answer
NP
Noorfatihah PirdausJun 16, 2024
Final Answer :
A
Explanation :
When the terms are FOB (Free on Board) destination, the seller is responsible for the freight cost until the goods are delivered to the buyer's specified destination. Therefore, option A is the correct choice.
Learning Objectives
- Interpret the significance of FOB shipping point and FOB destination terms in the context of freight cost implications.