Transportation-in is:
A) an operating expense.
B) part of purchase returns and allowances.
C) added to transportation-out as part of the calculation of cost of goods sold.
D) part of the cost of net purchases.

Question

Quizplus · Accepted Answer

Transportation-in is considered as part of the cost of net purchases because it is the cost incurred to transport goods to the buyer's location. As a result, it is included in the calculation of the total cost of inventory and is considered part of the cost of goods sold.

Transportation-In Is