If merchandise is shipped F.O.B. destination, the seller ultimately bears the expense of transporting it.

Question

Quizplus · Accepted Answer

Transportation costs are sometimes incurred by a merchandising company when it acquires goods, and this cost is included as part of the acquisition cost of the inventory. When the buyer is responsible for shipping costs, it is referred to as FOB shipping point. When the seller is responsible for shipping costs, it is referred to as FOB destination.

If Merchandise Is Shipped F