The term free on board means that the price includes?

A.

costs and insurance only

B.

costs and freight only

C.

freight and insurance only

D.

costs, insurance and freight

Correct answer is D

The term Free On Board is a transportation term that indicates when liability and ownership of goods are transferred from a seller to a buyer. It shows when the risk of loss shifts from the seller to the buyer, and who pays the costs of freight and insurance.