COMMERCE 1AA3 Lecture Notes - Lecture 18: Gross Profit
27 Nov 2017
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Document Summary
Sale of a demo car at a dealership. When companies make a sale and the sold merchandise will be shipped to the buyer, these are some of the shipping terms: Free-on-board (fob) shipping point: the ownership (title) of sold merchandise passes from the buyer to the seller as soon as the merchandise is loaded on the shipping vehicle. Free-on-board (fob) destination: the ownership (title) of sold merchandise passes from the buyer to the seller as soon as the merchandise is delivered to buyer. If the merchandise get damaged while in transit, the loss will accrue to: the buyer if the merchandise is shipped fob shipping point, the seller if the merchandise is shipped fob destination. The company receives a notice that the merchandise they bought is shipped, but they have not received it yet. Should this company include the ,000 in their inventory count (yes) exam.
