Intro To Inventory Flashcards
1
Q
FOB Shipping Point
A
Title passed to the buyer at the selling company’s warehouse
2
Q
Freight Out is
A
A delivery expense and is not inventoried
3
Q
FOB Destination
A
Title does not transfer to the buyer until the goods reach the destination. The seller owed the goods in transit and therefore incurred the transportation cost
4
Q
When FIFO inventory is used during periods of rising prices a perpetual inventory system results in an ending inventory cost that is
A
The same as a periodic inventory system
