Which of the following is not considered in computing net cost of purchases?
A)Freight-out expenses
B)Purchases
C)Freight paid on purchased goods
D)Purchases returns and allowances

Question

Quizplus · Accepted Answer

Freight-out expenses are not included in the calculation of net cost of purchases. Net cost of purchases is calculated by subtracting purchase returns and allowances from purchases, then adding freight paid on purchased goods. Freight-out expenses are expenses incurred when goods are shipped to customers, not when they are purchased by the business.

Which of the Following Is Not Considered in Computing Net