Match the terms with the descriptions related to merchandise sales and purchases.
-The buyer must pay the shipping costs.
A)Transportation-in
B)Perpetual inventory system
C)Net purchasesd.
D)FOB Destination
E)Cost of goods available for sale
F)Periodic inventory system
G)FOB Shipping point
H)Delivery expense

Question

Quizplus · Accepted Answer

This term means that the seller is responsible for the shipping costs, and therefore the buyer is not required to pay any transportation or delivery expenses.

Answer: B
 This system involves keeping real-time track of inventory levels and costs, as opposed to the periodic system which only updates inventory at set intervals.

Answer: C
 This term refers to the total amount spent on inventory, minus any discounts or returns.

Answer: D
 With this type of FOB term, the seller is responsible for the goods until they reach the buyer's destination. Therefore, the seller would be responsible for any shipping costs incurred.

Answer: E
 This term refers to the total value of inventory available for sale, including beginning inventory and any additional purchases made during the period.

Answer: A
 This term refers to the costs associated with transporting goods to the buyer's location, and is typically included in the cost of inventory.

Answer: H
 This term refers to any expenses related to delivering goods to the buyer, such as fuel and labor costs. These are typically separate from transportation costs.

Match the Terms with the Descriptions Related to Merchandise Sales