Asked by bryan chavez on Jun 11, 2024
Verified
Shipping terms where the ownership of merchandise passes to the buyer when the seller delivers the merchandise to the freight carrier.
a. Credit terms
b. FOB destination
c. FOB shipping point
d. Periodic inventory system
e. Perpetual inventory system
f. Inventory shrinkage
g. Single-step income statement
h. Multiple-step income statement
FOB Destination
This Incoterm means that the seller bears all costs and risks of transporting goods until they are delivered to the buyer's specified location.
FOB Shipping Point
FOB Shipping Point is a freight term indicating that the buyer assumes responsibility for the goods and the cost of shipping the moment the goods leave the seller’s premises.
Perpetual Inventory System
An approach in accounting that captures transactions related to inventory purchases or sales the moment they occur, facilitated by digital point-of-sale systems and enterprise asset management applications.
- Identify and define key terminology and concepts in inventory management and accounting.
Verified Answer
Learning Objectives
- Identify and define key terminology and concepts in inventory management and accounting.
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