11 what is the meaning of the terms quot f o b destination point quot a the buyer ha 4306260

11 what is the meaning of the terms quot f o b destination point quot a the buyer ha 4306260

11) What is the meaning of the terms “F.O.B destination point”

A) The buyer has ownership of the goods only when they arrive.

B) The point at which the buyer takes legal possession of the goods.

C) The buyer has ownership of the goods as soon as they are shipped.

D) The buyer remains liable for any loss during shipment.

12) Which goods in transit would be recorded in inventory at year end?

A) Goods purchased with terms FOB destination point that were received after year end.

B) Goods sold with terms FOB shipping point that were shipped before year end.

C) Goods purchased with terms FOB shipping point that were received after year end.

D) Goods sold with terms FOB destination point that were shipped before year end.

13) Which transaction would be included in the year end inventory?

A) Goods received on consignment at year end.

B) Goods shipped out on consignment at year end.

C) Goods shipped out FOB shipping point at year end.

D) Goods received after year end, shipped FOB destination.

14) What costs are not included in the cost of manufactured inventories?

A) Raw materials.

B) Labour to make the finished product.

C) Administrative costs.

D) Manufacturing overhead.

15) What is the meaning of the terms “F.O.B shipping point”?

A) The buyer takes ownership of the goods once they arrive at their receiving location.

B) The point at which the buyer takes legal possession of the goods.

C) The buyer takes ownership of the goods as soon as they are shipped to the buyer.

D) The seller remains liable for any loss or damage incurred during shipment.

16) Which goods in transit would be recorded in inventory at year end?

A) Goods sold with terms FOB destination point that were shipped at year end.

B) Goods sold with terms FOB shipping point that were shipped before year end.

C) Goods purchased FOB destination that have not been received by year-end.

D) Goods returned for credit before year-end, with terms FOB shipping point.

17) Which goods in transit would be recorded in inventory at year end?

A) Goods purchased with terms FOB destination point that were received after year end.

B) Goods purchased with terms FOB shipping point that were received after year end.

C) Goods sold FOB destination point that were shipped two weeks before year end.

D) Goods returned for credit, with terms FOB destination point, received two days after year end.

18) Which goods in transit would not be recorded in the seller's inventory at year end?

A) Goods sold with terms FOB destination point that were shipped at year end.

B) Goods sold with terms FOB shipping point that were shipped one day before year end.

C) Goods sold FOB destination point that remained on the shipping dock until one day after year end.

D) Goods sold FOB shipping point that were shipped two days after year end.

19) Which goods in transit would not be recorded in the buyer's inventory at year end?

A) Goods purchased with terms FOB destination point that were received at year end.

B) Goods purchased with terms FOB shipping point that were received at year end.

C) Good purchased with terms FOB destination point that were received after year end.

D) Goods purchased FOB destination point that were lost in shipment.

20) Which statement is correct about variable costing?

A) Under this method, fixed overhead is considered a product cost because production cannot take place without these costs.

B) Under this method, fixed overhead is considered a period cost because such costs do not vary according to production level.

C) Under this method, variable overhead is considered a period cost because production cannot take place without these costs.

D) Under this method, selling costs are considered a product cost because production cannot take place without these costs.

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