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FOB Factory Denotes the Price of the Products at the Factory

question 107

True/False

F.O.B. factory denotes the price of the products at the factory. If the price is quoted as F.O.B. shipping, then shipping costs are paid by the seller.


Definitions:

Compounded Annually

The calculation and addition of interest to the principal once a year.

Nominal Rate

The interest rate before adjustment for inflation, not reflecting the real cost of borrowing or the real return on an investment.

Compounded Monthly

The routine of accruing interest monthly, which incorporates calculating interest on the initial principal as well as on the interest that has previously been accrued.

Salary Increase

An increment in the amount of money earned by an employee on a regular basis, often annually or based on a performance review.

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