FOB Shipping point means that the buyer pays all costs incurred for the delivery of goods, once the goods are left from the supplier’s warehouse. The buyer becomes the owner of the goods in transit, when the goods are shipped by the seller is termed as FOB shipping point. FOB Destination means that the buyer pays all costs incurred for the delivery of goods once the goods are delivered at the buyer’s receiving point. The seller possesses the ownership for the goods in transit until the shipped goods reach the destination point of the buyer. The amounts and items to be recorded in inventory.

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Chapter 6, Problem 6.1AP

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FOB Shipping point means that the buyer pays all costs incurred for the delivery of goods, once the goods are left from the supplier’s warehouse. The buyer becomes the owner of the goods in transit, when the goods are shipped by the seller is termed as FOB shipping point.

FOB Destination means that the buyer pays all costs incurred for the delivery of goods once the goods are delivered at the buyer’s receiving point. The seller possesses the ownership for the goods in transit until the shipped goods reach the destination point of the buyer.

The amounts and items to be recorded in inventory.

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