BUISENESS MANAGEMENT
MERCHANDISING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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F.O.B Shipping Point
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F.O.B Destination
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Perpetual Inventory
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Periodic Inventory
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Detailed explanation-1: -FOB shipping point is a pricing term indicating the seller is responsible for the cost of the goods and the cost of delivering the goods to the buyer’s designated shipping point. The buyer is responsible for all costs and risks associated with the goods from the point of delivery.
Detailed explanation-2: -For FOB destination, the seller assumes all costs and fees until the goods reach their destination. Upon entry into the port, all fees-including duties, customs, taxes, and other fees-are borne by the buyer.
Detailed explanation-3: -F.O.B. Origin or Shipping Point means that the department usually pays all shipping/freight costs and legal ownership transfers to the department when the goods leave the vendor’s warehouse. The department assumes risk of damage during transit.