Question: Describe how transportation charges are paid under the following terms of sale: a. FOB destination, freight prepaid b. FOB origin, freight prepaid c. FOB destination,

Describe how transportation charges are paid under the following terms of sale:

a. FOB destination, freight prepaid

b. FOB origin, freight prepaid

c. FOB destination, freight collect and allowed

d. FOB origin, freight prepaid and charged back

e. FOB origin, freight collect

If the pricing policy is such that a firms customers pay for the freight, should the supplying firm consider such costs in making warehouse location, transportation service selection, and similar decisions?

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