Asked by
Estefani Garcia
on Nov 12, 2024Verified
If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are
A) consigned
B) n/30
C) FOB shipping point
D) FOB destination
FOB Shipping Point
A shipping term indicating that the buyer assumes all risk and pays for shipping costs from the point of departure; ownership of goods transfers to the buyer when the carrier picks up the items.
FOB Destination
is a shipping term indicating the seller bears delivery risk and costs until the goods reach the buyer's location, at which point the buyer takes over.
Title
A legal term referring to the formal right of ownership of property, assets, or a company.
- Understand the impact of freight terms and title passing on inventory costs.
Verified Answer
EN
Learning Objectives
- Understand the impact of freight terms and title passing on inventory costs.