1. Compare FOB shipping point and FOB destination terms 2. What are the differences between perpetual...

1. Compare FOB shipping point and FOB destination terms

2. What are the differences between perpetual inventory system and periodic inventory system?

(type it in a table to be more clear if you don't mind)

Please make sure that the answer is correct and clear

Expert Solution

Compare FOB Shipping point nd FOB destination point.

Basis of Difference	FOB Shipping Point	FOB Destination
Meaning	FOB (Free on Board Shipping) Point refers to the sale of goods that is executed when goods are shipped out.	FOB (Free on Board) Destination referes to the sale of goods that is executed when the fgoods are delivered at destination point.
Reponsibiltiy of Shipping Cost	When sales are made at the point of shipping, the shipping costs are made by the buyer.	In FOB destination, seller is responsible for paying shipping costs and is liable for the liabilities that may incur till product remains in transport.

What are the difference between perpetual inventory system and periodic inventory system.

Basis of Difference	Perpetual Inventory System	Periodic Inventory System
Meaning	Under perpetual inventory system, the continously inventory is recorded.	Under periodic inventory system, inventory is counted at specified interval say a month, to determine ending inventory, cost of goods sold etc.
Cost of goods sold	In this system, cost of ggoods sld is calculated after every sales.	On the contrary, cost of goods sold are only calculated after specified time period.

ekkarill92 answered 2 years ago

what is the difference between fob shipping point and fob destination

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