The Term Used When the Purchaser Is Responsible for the Cost

question 7

Multiple Choice

The term used when the purchaser is responsible for the cost of freight is:

• A) F.O.B. shipping point.
• B) F.O.B. destination.
• C) Freight-In.
• D) Purchases.

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Definitions:

Diversification

A risk management technique that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.

Negatively Correlated

Refers to two variables that move in opposite directions, meaning when one variable increases, the other decreases, and vice versa.

Positively Correlated

A relationship between two variables in which they move in the same direction, meaning as one variable increases, the other also increases.

401k Retirement Accounts

Tax-advantaged retirement savings accounts offered by employers, allowing employees to save and invest a portion of their paycheck before taxes are taken out.