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What is when the customer is responsible for the product when it is now shipped out by the seller?Group of answer choicespresales activitysales order processingnone of the statedFOB destinationpaymentinventory sourcingsales quotationsales orderinvoicedelivery

Question

What is when the customer is responsible for the product when it is now shipped out by the seller?Group of answer choicespresales activitysales order processingnone of the statedFOB destinationpaymentinventory sourcingsales quotationsales orderinvoicedelivery

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Solution

The term you're referring to is "FOB destination." This is a contractual term that means the seller retains responsibility for the goods until they reach the buyer's location. The seller is responsible for the cost of shipping and risk of loss.

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Select all that applyThe buyer and seller of merchandise must agree on who is responsible for paying freight terms. Show your understanding of freight terms by selecting all of the correct statements below.Multiple select question.Terms FOB destination means that the seller is responsible for shipping costs.When the shipping costs are the responsibility of the buyer, then the Merchandise Inventory account is debited for the freight charges.Revenue for the sale will be recorded after the goods reach their destination, if the goods are shipped FOB destination.Terms FOB shipping point means the buyer accepts ownership when the goods depart the seller's place of business.When the shipping costs are the responsibility of the seller, then the Merchandise Inventory account is debited.Terms FOB shipping point means the seller of the goods is responsible for freight charges.

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