Which of the Following Statements Is True of Shipping Costs

question 61

Multiple Choice

Which of the following statements is true of shipping costs?

• A) FOB installed indicates that the title and responsibility are transferred before the equipment is installed and used for operation.
• B) FOB origin is also referred to as FOB installed.
• C) The terms and conditions of a sale exclude shipping costs involved in transporting the goods.
• D) Shipping costs are solely borne by the seller.
• E) FOB destination means the buyer will take responsibility for the goods once they reach the buyer's location, and the seller will pay the freight.

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Definitions:

Chief Financial Officers

Senior executives responsible for managing the financial actions of a company, including financial planning and report tracking.

Financial Statements

Documents that present the financial activities and condition of a business or entity, including the balance sheet, income statement, and cash flow statement.

Chief Operating Officers

High-ranking executives responsible for overseeing the day-to-day administrative and operational functions of a company.

Foreign Corporation

Firm that operates in states where it is not incorporated.