(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point...

Question

Question

Answer 1

Answer #1

Solution:

If FOB Shipping Point:

Ownership transfers at shipping point

Goods in transit owned by Buyer

Transportation cost paid by Buyer

Insurance during transit paid by buyer.

If FOB FOB Destination:

Ownership transfers at Destination

Goods in transit owned by Seller

Transportation cost paid by Seller

Insurance during transit paid by Seller.

Answer 2

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