If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price.
A) F.O.b. destination
B) F.O.b. factory
C) transfer
D) postage-stamp
E) base-point

Question

Quizplus · Accepted Answer

F.O.B. (Free On Board) factory pricing means the buyer is responsible for shipping costs from the factory or point of origin. In this scenario, since the price quoted does not include shipping charges, it aligns with F.O.B. factory pricing, where the buyer pays for transportation from the factory to the destination.

If a Retailer Orders a Quantity of Merchandise to Be