Which of the Following Is True of Products Priced as "FOB

question 226

Multiple Choice

Which of the following is true of products priced as "FOB origin"?

• A)The purchase of these products permits the buyers to subtract transportation expenses from their bills.
• B)The transportation costs of these products are uniformly distributed among all channel members including the final purchaser.
• C)The legal title and responsibility of these products lies with the seller until it is delivered to the buyer.
• D)The buyer pays all the freight charges to transport the product from the manufacturer's loading dock.

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Definitions:

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjusting entries have been made.

Supplies Expense

Costs incurred for supplies used in the operations of a business.

Adjustment Data

Information used to make changes to accounts for the purposes of accurate financial reporting, such as accruals or deferrals.

Unbilled Consulting Revenue

Revenue earned from consulting services that have been delivered but not yet invoiced to the client.