Freight costs incurred on incoming merchandise are an operating expense to the buyer.

Name: Freight costs incurred on incoming merchandise are an operating expense to the buyer.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Freight costs incurred on incoming merchandise are considered part of the cost of the merchandise and are included in inventory costs until the merchandise is sold, at which point they become part of the cost of goods sold.

Freight Costs Incurred on Incoming Merchandise Are an Operating Expense