APICS Exam CLTD Topic 7 Question 77 Discussion

Actual exam question for APICS's CLTD exam

Question #: 77
Topic #: 7

[All CLTD Questions]

A company is sending a shipment to its customer in Italy It elects to pay the freight and be responsible for any liability and damage claims. Which of the following free on board (FOB) terms is the company using?

AFOB destination, freight collect

BFOB destination, freight prepaid

CFOB origin, freight prepaid

DFOB origin, freight collect

Show Suggested Answer

Suggested Answer: C

by Keith at May 11, 2024, 02:29 AM

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Jannette

2 months ago

I'm going with B) FOB destination, freight prepaid. It just makes the most sense for the scenario described.

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Nieves

2 months ago

Ha! This reminds me of that time I had to explain the difference between FOB origin and FOB destination to my boss. Good times.

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Olive

2 months ago

Hmm, I'm not too sure about this one. I was leaning towards C) FOB origin, freight prepaid, but now I'm second-guessing myself.

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Dorian

1 months ago

D: I think it's definitely not D) FOB origin, freight collect.

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Dorothy

1 months ago

C: I'm not sure, but I think A) FOB destination, freight collect could also be a possibility.

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Omer

1 months ago

B: I agree, that seems to make more sense.

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Kaitlyn

2 months ago

A: I think it might be B) FOB destination, freight prepaid.

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Patrick

3 months ago

I think the answer is B) FOB destination, freight prepaid. The company is responsible for the freight and any liability, so they must have paid the freight upfront.

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Antonio

2 months ago

FOB destination, freight prepaid is definitely the best option for the company in this situation.

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Louvenia

2 months ago

Exactly, it's better to be safe and pay for the freight to ensure a smooth delivery process.

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Twana

2 months ago

That makes sense, they wouldn't want to risk any liability issues by not paying for the freight upfront.

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Ming

3 months ago

I agree, the company is paying for the freight and taking responsibility, so it must be B) FOB destination, freight prepaid.

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Cherry

3 months ago

I believe the correct answer is B) FOB destination, freight prepaid. This ensures that the company is responsible for any liability and damage claims during transit.

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Sheldon

3 months ago

I agree with Emilio. By electing to pay the freight, the company is taking responsibility until the shipment reaches the customer in Italy.

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Emilio

4 months ago

I think the company is using FOB destination, freight prepaid.

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