Procession Groceries, a famous grocery merchandiser, purchased goods and paid transportation to bring them to the company warehouse. The transportation cost is known as:
A)freight out.
B)selling expense
C)freight in.
D)cost of goods sold.

Question

Quizplus · Accepted Answer

The transportation cost paid by Procession Groceries to bring the goods to their warehouse is known as "freight in". This cost is included in the cost of the merchandise inventory and is a part of the cost of goods sold when the goods are sold to the customers.

Procession Groceries, a Famous Grocery Merchandiser, Purchased Goods and Paid