The Purpose of Reviewing FOB Terms on the Invoice Is

question 153

Multiple Choice

The purpose of reviewing FOB terms on the invoice is to:

• A)identify the person liable to pay freight.
• B)calculate the amount of freight payable.
• C)to locate the transporter.
• D)to decide and conform the transporter.

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Definitions:

Marginal Cost

The additional cost incurred in the production of one more unit of a good or service.

Total Revenue

The total amount of money a company receives from its business activities, calculated by multiplying the price of goods or services by the quantity sold.

Total Cost

The aggregate amount of expenses that a company or individual incurs to produce or acquire goods or services.

Short-run Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied over a short period, during which at least one input is fixed.