which party would pay for freight costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. A furniture company in California needs to purchase wood to build its next line of patio
chairs. The purchasing manager is looking into purchasing timber from a company that is
located in Michigan, but will only agree to pay for the timber after it has been delivered. In
this case, which party would pay for freight costs?
OThe freight costs will be paid by the buyer.
OThe freight costs will be paid by the seller.
OThe freight costs will be divided in half.
OThe buyer will reimburse the seller for freight costs.
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