Shipping Terms of FOB Destination Mean That The

question 14

Multiple Choice

Shipping terms of FOB destination mean that the:

• A) purchaser is responsible for the shipping charges.
• B) shipping charges are debited to Freight-Out.
• C) items should be in the purchaser's inventory account at year-end if the items are in transit.
• D) Both (a) and (c) above.

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Definitions:

Equal Chance

The principle or condition ensuring that all outcomes or members of a group have the same probability of occurrence or selection.

Central Limit Theorem

A statistical theory that states that, given a sufficiently large sample size, the distribution of the sample mean will be approximately normally distributed, regardless of the distribution of the parent population.

Sample Mean

The sample mean is the average value of a sample set, calculated by adding together all of the observations and dividing by the number of observations.

Skewed to the Right

Describes a distribution of data that has a tail extending to the right, indicating that the majority of data points are on the left.