Goods in transit which are shipped f. o.b. shipping point should be:
a. included in the inventory of the seller.
b. included in the inventory of the buyer.
c. included in the inventory of the shipping company.
d. none of these.

b. included in the inventory of the buyer.

Explanation:

F.O.B (free on board) is one of the INCOTERMS (international commercial terms) that are the main regulators of the logistics activities. Under the F.O.B terms, the costs of: the goods loading at origin, exports customs declaration, carriage to port of export, unloading of truck in port of export and loading on vessel/airplane in port of export are allocated to the responsibility of the seller. The responsibility of the buyer about the cost allocations are: carriage (sea/air) to port of import, insurance, unloading in port of import, loading on truck in port of import, carriage to place of destination, import customs clearance, import duties and taxes and unloading at destination.

The inventory of the goods could differ in the situation in either F.O.B shipping point or F.O.B destination. In the first situation, the goods in transit are the property of the buyer but in the second, the goods in transit are the property of the seller. That’s why variant c is what we needed.

answer; i believe the correct answer is (sales promotion;