When goods are shipped FOB Shipping Point, the seller records this cost as an operating expense.

Name: When goods are shipped FOB Shipping Point, the seller records this cost as an operating expense.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

FOB Shipping Point means that the seller's responsibility for the goods ends when they are loaded onto the carrier at the shipping point. The seller records the cost of shipping as an operating expense because it is not included in the sales price of the goods.

When Goods Are Shipped FOB Shipping Point, the Seller Records