If Mary's Nursery Company in Philadelphia Quotes an FOB Origin

question 78

True/False

If Mary's Nursery Company in Philadelphia quotes an FOB origin price to a buyer in Delaware,it means the buyer will pay the shipping costs.

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Definitions:

Materials Requisition

The process of requesting and withdrawing materials from inventory for use in the production process or for other operational needs.

Source Document

An original record, such as an invoice or receipt, that evidences a business transaction.

Indirect Materials

Indirect materials are those materials used in the production process but are not directly traceable to specific products, such as lubricants for machinery.

Work in Process Inventory

Goods that are in the production process but have not yet been completed; represents one of the stages in manufacturing inventory.