Freight costs paid by a seller on merchandise sold to customers will cause an increase

Name: Freight costs paid by a seller on merchandise sold to customers will cause an increase
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Freight costs paid by a seller on merchandise sold to customers are considered part of the selling expenses, which are a component of the operating expenses for the seller. These costs are not directly related to the production (cost of goods sold) nor are they considered a contra-revenue account or an expense of the buyer.

Freight Costs Paid by a Seller on Merchandise Sold to Customers