Freight costs incurred by a seller on merchandise sold to customers will cause an increase
A)in the selling expenses of the buyer.
B)in operating expenses for the seller.
C)to the cost of goods sold of the seller.
D)to a contra revenue account of the seller.

Question

Quizplus · Accepted Answer

Freight costs incurred by a seller on merchandise sold to customers are considered part of the selling expenses, which are a category of operating expenses for the seller. These costs do not directly affect the buyer's expenses, the cost of goods sold, or create a contra revenue account for the seller.

Freight Costs Incurred by a Seller on Merchandise Sold to Customers