If the Ownership of Merchandise Passes to the Buyer When

question 60

True/False

If the ownership of merchandise passes to the buyer when the seller ships the merchandise, the terms are stated as FOB destination.

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Definitions:

Annual Dollar Volume

The total amount of money a product or service generates in sales over the period of a year.

Inventory Types

Categories of inventory such as raw materials, work-in-progress, finished goods, and maintenance, repair, and operations (MRO) supplies.

Maintenance/Repair/Operating Supply

Items and materials necessary for the upkeep and repair of operations, equipment, and facilities in an organization.

Safety Stock Inventory

A quantity of inventory kept on hand as a buffer against fluctuations in demand or supply.