If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price.
A)F.O.B. destination
B)F.O.B. factory
C)transfer
D)postage-stamp
E)base-point

Question

Quizplus · Accepted Answer

F.O.B. factory means the buyer is responsible for all shipping costs and takes ownership of the goods once they leave the factory. Therefore, the quoted price does not include shipping charges.

If a Retailer Orders a Quantity of Merchandise to Be