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 added to the cost of merchandise inventory because it is a cost incurred to get the goods into the buyer's possession and ready for sale. As a result, it is included in the cost of the inventory rather than being treated as an expense.

Which of the Following Is TRUE About Freight In