Which of the following is true regarding transportation costs when the designation FOB is used?
A) The selling price includes transportation costs.
B) The selling price does not include transportation costs.
C) The buyer and seller bear transportation costs with the costs apportioned at a rate of 50% to the buyer and 50% to the seller.
D) The buyer and seller with the cost being proportioned 75% to the buyer and 25% to the seller.
E) The buyer and seller with the cost being proportioned 25% to the buyer and 75% to the seller.
Correct Answer:
Verified
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