Which of the following is true of freight in?
A)It is an administrative expense.
B)It is a selling expense.
C)It is the transportation cost on purchases.
D)It is the transportation cost on sales.

Question

Quizplus · Accepted Answer

Freight in refers to the transportation cost incurred by the buyer on purchasing goods. It is added to the cost of goods purchased and is therefore a part of the cost of goods sold. Freight in is not an administrative or selling expense, and it is not related to transportation costs on sales.

Which of the Following Is True of Freight In