Which of the Following Indicates That the Shipment Is Free

question 27

Multiple Choice

Which of the following indicates that the shipment is free on board at the final point of shipment and the seller must pay all transportation costs?

• A) COD
• B) FOB shipping point
• C) FOB destination
• D) 4/10, EOM

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Definitions:

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.

Voluntary Exchange

A transaction where two parties trade goods or services by mutual agreement without coercion.

Transaction Costs

Expenses incurred during the buying or selling process, not limited to the price of the good, like fees, taxes, or other costs associated with the transaction.

Middlemen

Intermediaries or agents who facilitate transactions between producers and consumers by buying goods from producers and selling them to consumers, often adding value through services like transportation or storage.