Explain the difference in reporting f.o.b. plant if the product is “shipped out” from the plant or f.o.b. storage facility if the product is “shipped out” from the storage facility.

For some transactions, products are shipped to the buyer, or under the buyer’s direction, directly from the plant. For other transactions, products are shipped to the buyer, or under the buyer’s direction, from a storage facility that is separate from the plant. In both cases, transportation costs associated with shipping the product to the buyer, or under the buyer’s direction, should not be added to the reported price.