Transportation Costs: The costs of delivering the merchandise inventory from the manufacturer to the buyer are termed as transportation cost and are differentiated on the basis of terms of the payment of transportation charges or freight by the buyer or the seller. FOB (Free on Board) Shipping point means that the buyer pays all costs incurred for the delivery of goods once the goods is left from the supplier’s warehouse. To Describe: Who pay the freight charges at the time of (a) FOB shipping point.
Transportation Costs: The costs of delivering the merchandise inventory from the manufacturer to the buyer are termed as transportation cost and are differentiated on the basis of terms of the payment of transportation charges or freight by the buyer or the seller. FOB (Free on Board) Shipping point means that the buyer pays all costs incurred for the delivery of goods once the goods is left from the supplier’s warehouse. To Describe: Who pay the freight charges at the time of (a) FOB shipping point.
Solution Summary: The author explains that transportation costs are differentiated on the basis of the payment of transportation charges or freight by the buyer or the seller.
Transportation Costs: The costs of delivering the merchandise inventory from the manufacturer to the buyer are termed as transportation cost and are differentiated on the basis of terms of the payment of transportation charges or freight by the buyer or the seller.
FOB (Free on Board) Shipping point means that the buyer pays all costs incurred for the delivery of goods once the goods is left from the supplier’s warehouse.
To Describe: Who pay the freight charges at the time of (a) FOB shipping point.
(b)
To determine
Transportation Costs: The costs of delivering the merchandise inventory from the manufacturer to the buyer are termed as transportation cost and are differentiated on the basis of terms of the payment of transportation charges or freight by the buyer or the seller.
FOB (Free on Board) Destination means that the buyer pays all costs incurred for the delivery of goods once the goods is delivered at buyer receiving point.
To Describe: Who pay the freight charges at the time of (b) FOB destination
Who is responsible for the freight cost when the terms are FOB destination? Please explain with full explanation.
a. the seller
b. the buyer
c. the customer
d. either the buyer or the seller
What is freight out, and how is it recorded by the seller?
Determine the amount to be paid or collected as may be the case, applying the freight terms, discounts and transportation arrangement.
thank you!
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