In accounting terms, who is a consignor?

In accounting terms, a consignor is defined as the person or business from whom a shipment originates. This individual or entity retains ownership of the goods until they are sold by the consignee, who is responsible for selling the goods on behalf of the consignor. In this arrangement, the consignor provides the merchandise for sale but does not transfer the title to those goods until they are sold.

Understanding the role of the consignor is critical in business transactions involving consignments, as it delineates the responsibilities and ownership of the products between parties. This relationship impacts inventory accounting and revenue recognition, making it essential for students and professionals in the field of Funeral Service Education to grasp these terms clearly.