In a perpetual inventory system, freight charges paid on goods that have been purchased are accounted for as a(an)

Question

Quizplus · Accepted Answer

In a perpetual inventory system, freight charges paid on goods that have been purchased are added to the cost of inventory, not recorded as a separate expense. This is because these costs are necessary to bring the inventory to its current location and condition, ready for sale.

In a Perpetual Inventory System, Freight Charges Paid on Goods