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 on purchases of goods. It is added to the cost of inventory and is therefore recognized as a part of the cost of goods sold. It is not an administrative expense or selling expense as it is directly related to the cost of inventory.

Which of the Following Is TRUE of Freight In