Which One of the Following Statements Is False

question 80

Multiple Choice

Which one of the following statements is false?

• A)FOB shipping point means the buyer has legal title to the goods while they are in transit.
• B)FOB shipping point means the buyer has legal title to the goods when they are shipped.
• C)FOB destination means the seller has legal title to the goods until they reach the buyer's place of business.
• D)FOB shipping point means the buyer acquires legal title to the goods when they reach the buyer's place of business.

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Definitions:

Factory Overhead Rate

A calculation used to allocate manufacturing overhead costs to individual units of production, based on a certain base such as labor hours or machine hours.

Machine Hours

A measure of production time, tracking the total hours that machinery is in operation during the manufacturing process.

Fabrication Department

A division within a manufacturing company where raw materials are assembled or processed to create finished goods.

Procurement Activity

The process undertaken by businesses to acquire goods or services, including planning, selection, and purchasing, to meet its requirements.