Which of the Following Parties to a Shipping Contract Bears

question 4

Multiple Choice

Which of the following parties to a shipping contract bears the risk of loss of goods during transport?

• A)the seller
• B)the carrier
• C)the buyer
• D)the seller and the carrier

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Definitions:

Merchandise Inventory

The total value of goods held by a company for the purpose of resale.

Selling Expenses

Expenses directly related to the sale of goods or services, like marketing expenses and wages for sales personnel.

Administrative Expenses

Costs related to the general administration of a business, such as salaries of senior executives, legal and accounting services.

Product Costs

The total costs associated with making a product, including direct materials, direct labor, and manufacturing overhead.