RAJ Inc. has secured an electronic link with its established customers and can offer Just In Time delivery to their retail locations. The JIT delivery expenses appear on the income statement included in

Question

Quizplus · Accepted Answer

JIT delivery expenses are a part of distribution expenses since they are related to the transportation, handling, and delivery of goods to the retail locations. Therefore, option B is the best choice. Cost of Goods Sold includes the direct cost of producing goods, while amortization expenses relate to the depreciation of intangible assets. Selling expenses and administration expenses are related to the sales and general administrative activities of the company, respectively.

RAJ Inc Has Secured an Electronic Link with Its Established Customers