The terms and conditions of sale include shipping costs. The seller quotes an FOB price. The letters FOB stand for:
A)feedback on business
B)frequency of business
C)function of buyer
D)freight of buyer
E)free on board

Question

Quizplus · Accepted Answer

FOB stands for "Free on Board", which means that the seller assumes responsibility for the goods until they are loaded onto a shipping vessel, at which point ownership and responsibility transfers to the buyer. The price quoted by the seller is therefore for the goods only and does not include any shipping costs.

The Terms and Conditions of Sale Include Shipping Costs