Vegan Specialty Foods,a grocery merchandiser,purchased goods and paid transportation to bring them to the company warehouse.The transportation cost is known as ________.

Question

Quizplus · Accepted Answer

The transportation cost incurred by Vegan Specialty Foods to bring the purchased goods to the company's warehouse is known as "freight in", which is an inventory cost and is included in the cost of goods purchased. Therefore, the correct answer is C - freight in.

Both A - freight out and B - selling expense are costs incurred by the company, but they are related to the distribution and shipping of goods to customers, not transportation costs from suppliers to the company's warehouse.

D - cost of goods sold refers to the cost of inventory that has been sold during a specific accounting period, and does not include transportation costs.

Vegan Specialty Foods,a Grocery Merchandiser,purchased Goods and Paid Transportation to Bring