When a company ships goods to a customer and pays for freight out,how is that cost recorded?

Name: When a company ships goods to a customer and pays for freight out,how is that cost recorded?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Freight out, or the cost of shipping goods to customers, is considered an operating expense. It is recorded as a separate expense related to selling and distribution, rather than being included in the cost of inventory or cost of goods sold.

When a Company Ships Goods to a Customer and Pays