Goods in Transit That Are Shipped FOB Shipping Point Should

question 8

Multiple Choice

Goods in transit that are shipped FOB shipping point should be included

• A) in the inventory of the buyer.
• B) in the inventory of the seller.
• C) in the inventory of the shipping company.
• D) in no one's inventory until they arrive at their destination.

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Definitions:

Units-Of-Production Method

A depreciation method that allocates expense based on the actual usage or production levels of the asset.

Scrap Value

The estimated residual value of an asset after it has reached the end of its useful life and is no longer economically serviceable.

Units Of Production

A method of allocating the cost of a tangible asset over its useful life based on the amount of production or use of the asset.

Scrap Value

The estimated resale value of an asset after it has reached the end of its useful life.