APICS CLTD Exam - Topic 7 Question 77 Discussion

Actual exam question for APICS's CLTD exam

Question #: 77
Topic #: 7

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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Felicitas

9 months ago

Yup, they’re taking on all the risk with that term!

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Magnolia

9 months ago

Seems odd they’d cover freight and liability, right?

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Lucy

9 months ago

Wait, are you sure? I thought it was FOB origin.

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Kaitlyn

10 months ago

Totally agree, that's the right choice!

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Isaiah

10 months ago

It's FOB destination, freight prepaid.

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Xochitl

10 months ago

I’m confused about the terms. I thought "freight collect" meant the buyer pays for shipping, so maybe it’s not FOB destination?

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Jani

10 months ago

This question feels familiar; I practiced one like it. I think if they pay for freight, it leans towards FOB destination, but I could be wrong.

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Lawana

10 months ago

I'm not entirely sure, but I remember something about FOB origin meaning the buyer takes responsibility once it leaves the seller's location.

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Kenny

11 months ago

I think the company is responsible for the freight and claims, so it might be FOB destination, freight prepaid?

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Eun

11 months ago

This is a tricky one. I'm not totally sure about the differences between the FOB terms, but I think the key here is that the company is paying the freight. That suggests it's either FOB destination, freight prepaid or FOB origin, freight prepaid. I'll have to review my notes to decide which one.

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Nana

11 months ago

Okay, I think I got it. Since the company is responsible for the freight, that means it's not FOB origin, freight collect. And if they're responsible for liability and damage, that rules out FOB destination, freight collect. So the answer must be FOB destination, freight prepaid.

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Dong

11 months ago

Hmm, I'm a bit confused. The question says the company is responsible for liability and damage claims, but that could still be FOB origin, freight prepaid. I'll have to think this through carefully.

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Jess

11 months ago

This seems straightforward. The company is responsible for the freight, so it must be FOB destination, freight prepaid.

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Sylvie

11 months ago

Okay, I've got a strategy for this. The key is understanding what a "passive midplane" means. If it has no active components like resistors or ICs, then that suggests the statement is likely true. I'll go with A.

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Hayley

11 months ago

Providing a satisfaction survey is definitely a good way to get customer feedback and improve the process. I think that's the best option here.

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Chantell

11 months ago

I'm pretty confident I know this one. The two main categories in Porter's Value Chain are Primary Activities and Support Activities.

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Lucy

11 months ago

If I recall correctly, using dual connections from L1 to L2 can enhance redundancy. Maybe option C is worth considering, but I'm not entirely confident.

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Jannette

1 year 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

1 year 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

1 year 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 year ago

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

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Dorothy

1 year 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 year ago

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

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Kaitlyn

1 year ago

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

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Patrick

1 year 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

1 year ago

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

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Louvenia

1 year ago

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

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Twana

1 year 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

1 year 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

1 year 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

1 year 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

1 year ago

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

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