If the Terms of the Contract Specify FOB (Free on Board)

question 73

Multiple Choice

If the terms of the contract specify FOB (free on board) destination, then:

• A)the seller has title until the goods are received at the destination.
• B)the buyer is responsible for any loss during transportation.
• C)the buyer assumes the responsibility and risk for the merchandise as soon it leaves the factory.
• D)the seller does not expect payment for the merchandise until it reaches its destination.
• E)the goods are being sold on consignment.

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Definitions:

Customer Order

A request made by a customer for a specific product or service from a business.

Mass Customization

Mass customization is a manufacturing and business strategy that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Tailoring Products

The process of customizing goods or services to meet the specific needs or preferences of individual customers or market segments.

High-Volume Scale

Operations or production methods designed to handle large quantities of products or transactions efficiently.