How do freight costs under FOB Shipping Point and FOB Destination terms affect overall inventory valuation and financial statements?

• A. FOB Shipping Point decreases inventory valuation; FOB Destination increases inventory valuation.
• B. Both FOB Shipping Point and FOB Destination decrease inventory valuation.
• C. FOB Shipping Point increases inventory valuation; FOB Destination affects selling expenses.
• D. Both FOB Shipping Point and FOB Destination increase selling expenses.

Answer: (C)