Hi-View Industries, sells merchandise to Action Powersports on account. As terms of the deal, Hi-View Industries will coordinate the shipment, but Action Powersports is responsible for paying the shipping costs. This is an example of:

Question

Quizplus · Accepted Answer

FOB Shipping Point means that the buyer (Action Powersports) is responsible for paying the shipping costs and assumes ownership of the merchandise as soon as it leaves Hi-View Industries' shipping dock. This is in contrast to FOB Destination where the seller (Hi-View Industries) would be responsible for paying the shipping costs until the merchandise reaches its final destination. Freight-In and Freight-Out refer to the costs of shipping merchandise either into or out of a company's location, respectively, and are not directly related to FOB terms.

Hi-View Industries, Sells Merchandise to Action Powersports on Account