FOB origin pricing is a method of pricing where:
A)title of goods remains with the manufacturer until sold to the ultimate consumer.
B)title of goods passes to the buyer upon arrival at the final destination.
C)title of goods passes to the buyer at the point of loading.
D)price the seller sets includes all transportation costs.

Question

Quizplus · Accepted Answer

FOB origin pricing means that title of the goods and responsibility for the goods transfer from the seller to the buyer at the point of loading onto the transportation, therefore the price the seller sets does not include transportation costs. In FOB destination pricing, the title passes to the buyer only on delivery to the final destination. Therefore, option B is incorrect. Option A refers to consignment sales, and option D refers to freight prepaid pricing, but they do not relate to FOB origin pricing.

FOB Origin Pricing Is a Method of Pricing Where