When Goods Are Shipped FOB Shipping Point, Which of the Following

question 8

Multiple Choice

When goods are shipped FOB shipping point, which of the following is NOT true?

• A) The seller assumes responsibility for all freight costs
• B) Shipping costs may be listed separately on the customer's invoice
• C) The seller may pay the freight charges directly, but invoices the buyer.
• D) The buyer is responsible for all freight costs

---

Definitions:

Long Run

A timeframe in economic analysis where all inputs can be adjusted, allowing for the analysis of long-term strategic planning.

This Firm

A term often used in economic models or discussions to represent a generic company or business under analysis.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

Opportunity Costs

The penalty of not opting for the next superior alternative while making a decision.