Adding freight-out expenses to net purchases gives net cost of purchases.

Name: Adding freight-out expenses to net purchases gives net cost of purchases.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Freight-out expenses are related to the delivery of goods to customers and are considered a selling expense, not included in the calculation of net cost of purchases, which typically includes net purchases plus freight-in (shipping costs for getting goods to the seller).

Adding Freight-Out Expenses to Net Purchases Gives Net Cost of Purchases