Transportation-in is considered as part of the net cost of purchases, which includes the purchase price and any other costs incurred to get the goods from the supplier to the buyer's location. It is not an operating expense, nor is it added to transportation-out for the calculation of cost of goods sold.

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Transportation-In Is

Question 65

Multiple Choice

Transportation-in is

A) an operating expense.
B) part of purchase returns and allowances.
C) added to transportation-out as part of the calculation of cost of goods sold.
D) part of the net cost of purchases.

Correct Answer: