Freight out refers to transportation costs incurred to ship goods out of the warehouse, such as delivering goods to customers or shipping products to other retailers. This cost is typically included as part of the cost of goods sold and is expensed in the same period that the related sales occur.

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What Is Freight Out

Question 40

Multiple Choice

What is freight out?

A) Transportation costs to ship goods into the warehouse
B) Inventory costs
C) Costs that are not expensed
D) Transportation costs to ship goods out of the warehouse

Correct Answer: