Which of the following statements is true of shipping costs?
A. The terms and conditions of a sale exclude shipping costs involved in transporting the goods.
B. "FOB installed" indicates that the title and responsibility are transferred before an equipment is installed and used for operation.
C. Shipping costs are solely borne by the seller.
D. FOB destination means the buyer will take responsibility for goods once they reach the buyer's location and the seller will pay the freight.
E. FOB origin is also referred to as FOB installed.
Answer: D
You might also like to view...
The FASB decided that the allocation of income taxes paid to operating, financing, and investing activities would be complex and arbitrary, and relied on which one of the following justifications for its decision?
A. Materiality constraint B. Cost-benefit constraint C. Historical cost D. Revenue recognition principle
Morgan, Inc. uses a perpetual inventory system and the net method of recording purchases. On May 12, a merchandise purchase of $15,000 was made on credit, 2/10, n/30. The journal entry to record this purchase is:
A.
| Merchandise Inventory | 14,700 | |
| Accounts Payable | 14,700 |
B.
| Purchases | 15,000 | |
| Accounts Payable | 15,000 |
C.
| Accounts Payable | 15,000 | |
| Merchandise Inventory | 15,000 |
D.
| Merchandise Inventory | 15,000 | |
| Accounts Payable | 15,000 |
E.
| Purchases | 14,700 | |
| Accounts Payable | 14,700 |
______ are periodic, fairly short-term fluctuations in demand often caused by human activities or weather.
a. Cyclical variations b. Seasonal variations c. Irregular variations d. Random variations
Edit order, record sales order, update inventory, notify warehouse is the sequence of events for entering a(n) ______________________________.
Fill in the blank(s) with the appropriate word(s).