Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 6 - Reporting and Analyzing Inventory - Questions: 20

Answer

Cost includes all expenditures necessary to acquire goods and place them in a Condition ready for sale.

Work Step by Step

It is not proper to include them in the cost of goods sold account, since the freight-out is the expense of transportation of goods for sales
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.