The Cost of Freight-In

question 163

Multiple Choice

The cost of freight-in

• A) is to be included in the standard cost of direct materials.
• B) is considered a selling expense.
• C) should have a separate standard apart from direct materials.
• D) should not be included in a standard cost system.

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Definitions:

Punitive Damages

Compensation awarded to a plaintiff beyond actual damages, intended to punish the defendant for egregious wrongdoing and deter similar behavior.

Compensatory Damages

Financial compensation awarded to a plaintiff to cover actual losses and harm suffered due to another party's actions or negligence.

Punitive Damages

Monetary compensation awarded in lawsuits over and above actual damages, intended to punish the defendant for particularly egregious conduct.

Policy Limits

The highest sum an insurer will disburse for a claim covered by the policy.