When a seller uses FOB factory pricing,:
A) all buyers pay a uniform delivery cost.
B) the delivered price is the same to all buyers.
C) there is a phantom freight charge.
D) buyers located near the seller have no price advantage over buyers located farther away.
E) the buyer pays all the freight charges.

Question

Quizplus · Accepted Answer

FOB (Free On Board) factory pricing means that the buyer is responsible for all freight charges from the seller's factory or warehouse. This implies that the buyer pays for the transportation of the goods, not the seller.

When a Seller Uses FOB Factory Pricing