The Risk of Loss in a ____ Contract Passes to the Buyer

question 49

Multiple Choice

The risk of loss in a ____ contract passes to the buyer when the goods are tendered to the buyer at that place; and the risk of loss in a(n) ____ contract passes to the buyer when the goods are delivered to the carrier at the port or place of origin.

• A) Shipment; destination.
• B) Point of import; point of export.
• C) Destination; origination.
• D) Destination; shipment.

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Definitions:

Process Costing

An accounting methodology used in manufacturing where costs are applied to a batch of products rather than individual items, suitable for homogeneous products.

Ending Work

Refers to the final stages or completion of tasks or projects in a given period.

Process Inventory

Refers to the goods and materials held by a company during its manufacturing process but not yet completed.

Cost System

A method or set of procedures used by organizations to track, record, and analyze costs associated with their operations.