If Goods Shipped FOB Destination Are in Transit at the End

question 49

Multiple Choice

If goods shipped FOB destination are in transit at the end of the year,they should be included in the inventory balance of the

• A) seller.
• B) common carrier.
• C) buyer.
• D) bank.

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Definitions:

Time Value

The concept that money available today is worth more than the same amount in the future due to its potential earning capacity, often used in evaluating investment opportunities.

Inventory Control

The process of managing inventory levels, orders, sales, and deliveries to ensure the right quantity of stock is available at the right time.

Sales Rise

An increase in the amount of products or services sold by a business within a specific period.

Safety Stock

An inventory buffer to prevent stockouts, typically held to account for variability in demand or supply.