Which of the following is a correct statement regarding shipping terms and freight costs?
A) Freight-out paid by the seller under shipping terms FOB destination is part of the cost of inventory.
B) Freight-out is added to the purchase price of the inventory.
C) Freight-out is the transportation cost paid by the buyer under the shipping terms FOB shipping point.
D) Freight-out paid by the seller is a delivery expense and not part of the cost of the inventory.
Correct Answer:
Verified
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