When goods are shipped FOB Shipping Point, this cost reduces the seller's net income but not gross profit.

Name: When goods are shipped FOB Shipping Point, this cost reduces the seller's net income but not gross profit.
Brand: Quizplus
Rating: 4.9 (60 reviews)

Question

Quizplus · Accepted Answer

When goods are shipped FOB Shipping Point, the cost of shipping is borne by the seller and reduces their net income. However, it does not affect the gross profit, as this only takes into account the revenue earned from sales and the cost of goods sold.

When Goods Are Shipped FOB Shipping Point, This Cost Reduces