Consider That You Are a fiNance Manager, and One of Your

question 24

Essay

Consider that you are a finance manager, and one of your junior staff wanted an explanation of the
term aggregation. Provide a definition that conveys what the term means from a finance
perspective.

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Definitions:

FOB

Free On Board, a term used in shipping to indicate that the seller bears the cost of delivering goods to a specified point and the buyer takes responsibility for damage and loss from that point forward.

Transportation Costs

Expenses associated with the movement of goods or individuals from one location to another.

Selling Price

The amount of money for which a product or service is offered for sale to the public.

Common-Carrier Delivery Contract

A type of contract in which purchased goods are delivered to the buyer via an independent contractor, such as a trucking line.