Goods in transit that are shipped FOB shipping point should be included
A) in the inventory of the buyer.
B) in the inventory of the seller.
C) in the inventory of the shipping company.
D) in no one's inventory until they arrive at their destination.

Question

Quizplus · Accepted Answer

Goods that are shipped FOB shipping point should be included in the inventory of the buyer. This is because the ownership of the goods and the risk of loss or damage transfer to the buyer once the goods leave the seller's location. Therefore, the buyer is responsible for including these goods in their own inventory.

Goods in Transit That Are Shipped FOB Shipping Point Should