When freight-in is a relatively small amount,most companies include the cost in
A)operating expenses.
B)cost of goods sold.
C)administrative expenses.
D)merchandise inventory.

Question

Quizplus · Accepted Answer

Freight-in costs are typically included in the cost of goods sold because they are directly associated with the acquisition of inventory. When these costs are small, they are still considered part of the cost of acquiring the goods to be sold.

When Freight-In Is a Relatively Small Amount,most Companies Include the Cost