Asked by Danielle McBratney on May 12, 2024
Verified
Freight costs incurred by the seller on outgoing merchandise are an operating expense to the seller.
Freight Costs
Expenses associated with transporting goods from one place to another, which can include costs for shipping, trucking, or rail transport services.
Operating Expense
Expenses incurred during the normal operations of a business, such as salaries, rent, and utilities, excluding cost of goods sold.
Outgoing Merchandise
Outgoing merchandise refers to inventory that has been sold and is in the process of being shipped to the customer.
- Identify and categorize expenses related to the merchandising operations.
Verified Answer
Learning Objectives
- Identify and categorize expenses related to the merchandising operations.
Related questions
The Sales Returns and Allowances Account and the Sales Discounts ...
Freight Terms of FOB Destination Means That the Seller Pays ...
Purchase Returns and Allowances and Purchase Discounts Are Subtracted from ...
Operating Expenses Are Subtracted from Revenue for a Service Company ...
The Operating Cycle of a Merchandiser Is ...