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Creating a narrated Microsoft PowerPoint presentation that verbally and visually describes how merchandise flows through both a Freight on Board (FOB) Destination and Freight on Board (FOB) shipping...

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Creating a narrated Microsoft PowerPoint presentation that verbally and visually describes how merchandise flows through both a Freight on Board (FOB) Destination and Freight on Board (FOB) shipping process.

Please outside resources to prepare your presentation. At aminimum, the following must be included in your presentation:

· FOB destination

o definition

o history

o costs

o terms

o When does ownership change hands?

o Who covers shipping costs?

o journal entry that records a FOB shipping point transaction from purchase to delivery

o one comprehensive real-life example

· FOB shipping point

o definition

o history

o costs

o terms (ex. 1/15, n30)

o When does ownership change hands?

o Who covers shipping cost?

o journal entry that records a FOB shipping point transaction from purchase to delivery

o one comprehensive real-life example

Discussion PowerPoint Assignment Requirements:

1. Create and post a creative and verbally narrated Microsoft PowerPoint presentation.

o Be creative by usingpictures and diagrams to explain the information

o Include a minimum of nine slides, including a title, introduction, conclusion, and a reference slide.

o Please cite a minimum of three outside sources, not including the textbook.

Answered Same Day Jan 22, 2022

Solution

Sandeep answered on Jan 23 2022
126 Votes
PowerPoint Presentation
Understanding Freight on Board –Ready Reckone
Common incoterm used in International trade parlance to indicate shipping of merchandise onboard vessel from seller to buyer is FOB.
Freight on Board is shipping term to indicate between selle
uyer who will bear the shipping cost and point in transit where title and possession in goods shifts from exporter to importer as per contract. Transfer point helps buyer to know when to recognize these goods as Inventory inwards in Books. FOB is of 2 types
FOB Destination point
Title and risk vests in seller until good reach buyers dock.
Seller bears Freight and other charges till goods in transit .
Inventory accounted in seller book unless received by buyer
FOB Shipping point
Title and risk passes to buyer at seller’s shipping dockyard when on board the vessel.
Seller not responsible for damage or freight cost in transit .
Inventory accounted in buyer book at shipping dock.
Introduction to FOB
History of FOB
Different trading practices and interpretations gave birth to Incoterms.
Goods passed over the rail by hand on ship .
In modern era, sealed container replaced ship’s rail and damages couldn’t be ascertained .
In 1990 FCA(Free ca
ier) term replaced ship’s rail serving no practical purpose in Incoterm.
Incoterms in 2010 substituted FCA with FOB in sync with modern commercial reality and avoid costly disputes.
Passing the ship’s rail term abolished from Incoterm in 2010 amendment
Cost of FOB destination.
Seller bears the shipping cost and other claims till goods reach their destination.
Seller liable for loss and replacement of damaged goods in transit.
Upon entry in buyers port all customs , taxes and other fees are buyer liability.
FOB Destination
Terms of FOB destination
FOB Destination, Freight Prepaid
Title shift to buyer when goods a
ive at buyer's place.
Seller owns good in transit and pays freight charges
FOB Destination, Freight Prepaid and Added
Title shift to buyer when goods a
ive at buyer's place.
Seller pays freight and adds to the buyer's invoice .
Buyer bears freight charges
Seller owns goods in transit and filed claims , if any.
FOB Destination, Freight Collect
Title shift to buyer when goods a
ive at buyer's place.
Buyer pays freight charges when goods received
Seller owns goods in transit and file claims , if any.
FOB Destination, Freight Collect, and Allowed
Title shift to buyer when goods a
ive at buyer's place.
Buyer pays freight when goods are received and collects from supplier by adjusting in invoice.
Seller bears freight charges ,own goods in transit and file claims, if any.
FOB Destination
Change of...
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