Freight expenses are typically allocated separately from the other accounts used in the purchase to accurately reflect the cost associated with transporting the goods or assets. This allows for a more precise accounting of total acquisition costs.

Solved

Freight Expenses -

Question 27

Multiple Choice

Freight expenses -

A) cannot be allocated when they apply to purchases of assets if the asset accounts do not allow allocations
B) are allocated in the same proportion as the other accounts used in the purchase
C) are allocated separately from the other accounts used in the purchase
D) can never be allocated

Correct Answer: