Which of the following is true about freight in?
A)Freight in is added to the cost of merchandise inventory.
B)Freight in is a selling expense.
C)Freight in is an operating expense.
D)Freight in is deducted from Accounts payable.

Question

Quizplus · Accepted Answer

Freight in is considered a part of the cost of purchasing inventory, so it is added to the cost of merchandise inventory to reflect the total cost of acquiring the goods.

Which of the Following Is True About Freight In