Freight Costs Incurred by a Seller on Merchandise Sold to Customers

question 140

Multiple Choice

Freight costs incurred by a seller on merchandise sold to customers will cause an increase

• A)in the selling expenses of the buyer.
• B)in operating expenses for the seller.
• C)to the cost of goods sold of the seller.
• D)to a contra revenue account of the seller.

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Definitions:

Units-Of-Production Method

An accounting method of depreciation where an asset's cost is allocated based on the number of units it manufactures or produces.