The cost of delivering merchandise to the customer is:
A)Part of cost of goods sold.
B)Used in the calculation of net sales.
C)An operating expense.
D)A reduction of gross profit.

Question

Quizplus · Accepted Answer

The cost of delivering merchandise to the customer is considered an operating expense, which is a cost directly related to running the day-to-day operations of the business. It is not part of the cost of goods sold, which only includes the direct costs associated with producing the goods being sold. It is also not used in the calculation of net sales, which only takes into account the total revenue generated from sales. Finally, it is not a reduction of gross profit, which is the difference between total revenue and the direct costs of producing goods.

The Cost of Delivering Merchandise to the Customer Is