Goods in transit are included in a purchaser's inventory: Multiple Choice OAt any time during transit O If the goods are shipped FOB shipping point O When the supplier is responsible for freight charges O If the goods are shipped FOB destination. O After the half-way point between the buyer and seller.

Question

Goods in transit are included in a purchaser's inventory: Multiple Choice OAt any time during transit  O If the goods are shipped FOB shipping point O When the supplier is responsible for freight charges O If the goods are shipped FOB destination. O After the half-way point between the buyer and seller.

Anu Bhardwaj · Accepted Answer

If the goods are shipped FOB shipping point.

Under FOB (Free on Board) shipping point, ownership of the goods transfers to the purchaser as soon as the seller ships them. Therefore, goods in transit are included in the purchaser’s inventory.

If it were FOB destination, ownership transfers only when the goods reach the buyer, so they wouldn’t yet be in the purchaser’s inventory during transit.

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Anu Bhardwaj

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