If Goods Are Shipped FOB Destination, Who Is Responsible for the Shipping

question 36

Short Answer

If goods are shipped FOB destination, who is responsible for the shipping costs - the buyer or the seller?

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Definitions:

Reported Profit

The profit figure announced by a company, typically found in its financial statements, after accounting for all expenses.

Accrual Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, respectively, regardless of when the cash is actually exchanged.

Operating Performance

A measure of a firm's efficiency in managing its core business operations, often evaluated using metrics such as operating margin and revenue growth.

Accrual Accounting

A method of accounting that records revenues and expenses when they are incurred, regardless of when cash transactions occur.