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

Name: When a firm 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

The cost of freight out is a transportation expense incurred by the business in order to deliver the goods to the customer. Since this cost is not directly related to the cost of producing the goods, it is recorded as an operating expense, rather than an addition to cost of sales or cost of inventory.

When a Firm Ships Goods to a Customer and Pays