Short Answer
Indicate whether each of the following statements is true or false.(Assume a perpetual inventory system. )
_____ a)The freight terms FOB shipping point increase the cost of inventory to the buyer.
_____ b)The term FOB means that goods are shipped free of charge to buyer and seller.
_____ c)FOB shipping point means that purchaser's responsibility ends at shipping point.
_____ d)FOB destination means that seller's responsibility ends at destination.
_____ e)When the seller of merchandise records freight under the terms FOB shipping point,the seller records an expense.
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a)True b)F...View Answer
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