<span>If a sells to b, and b obtains title while goods are in transit, the goods were shipped FOB SHIPPING POINT.
If c sells to d, and c maintains title until the goods arrive at d's door then the goods were shipped FOB DESTINATION.
FOB stands for Free on Board. The recording of the sale will be dependent on whether it is FOB shipping point or FOB destination. In FOB shipping point, the buyer becomes the owner of the item when it is shipped. In FOB destination, the buyer becomes the owner of the items when it is received. </span>
Translation
At a shipbuilding and repair company, products are subject to VAT, and VAT is calculated according to the withholding PP. Enterprises import welding rods directly from Kim Tin Co., Ltd.
In the period, there are documents as follows: Deduction of opening balance: KT421 - 2.5 welding rod: 400kg x 19,000 VND/kg Welding rod KT421 - 3.0: 1,200kg x 19,000 VND/kg Welding rod KT6013 - 4.0 : 500kg x 18,800 VND/kg Welding rod GL48 -5.0: 700kg x 20,000 VND/kg
* During the period, there were arising economic transactions as follows:
1. Buying KT421 - 2.52 welding rod .000 kg stocked, unit price excluding VAT% 19,500 VND/kg, unpaid. The cost of loading and unloading is 100 VND/kg, paid in cash.
2. Welding rod KT6013 - 4.0 1,500 kg imported, unit price excluding VAT 10% 19,300 VND/kg, cost before warehousing is 100 VND/kg, not yet paid to seller and loader.
3. Welding rod GL48 -5.0 500 kg in stock, unit price excluding VAT 10% 21,000 VND/kg, unpaid. Shipping cost is 500 VND/kg, paid in cash for the Supplier.
4. Export 1,600kg KT421 - 2.5 welding rod, 500kg KT6013 - 4.0 welding rod for SG125 shipbuilding
5. KT421 - 3.0 welding rod for SG130 shipbuilding is 500 kg; 50 kg used for repair workshop.
Answer:
Threat of substitute products and services
Explanation:
In simple words, The threat of alternatives or substitutes can be defined as the problem of existence of several other goods from outside a sector that a consumer might buy. An industry's economic framework is challenged as alternative goods are present that offer a similarly similar match of advantages at a reasonable price.
Thus, from the above we can conclude that the given case depicts threat of substitutes.
Answer:
buyers are relatively comfortable with the quality and performance of substitutes, and the costs to buyers of switching over to the substitutes are low.
Explanation:
Substitute goods are goods that can be used in place of another good.
Factors that increases competitive pressures from substitute products include:
- the switching cost : the lower the cost of switching to substitute good, the higher the competitive pressures from substitute products
- If the demand for the industry product is price sensitive : if demand for the product is price sensitive, a small increase in price would lead to an increase in demand for the substitute good
