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Income taxes have a major effect on capital budgeting decisions.
Cost of Goods Sold
The financial outlays directly connected with creating the products a company sells, which entail materials and labor.
Purchases Returns and Allowances
Transactions involving the return of goods to suppliers or receiving discounts due to issues like damaged goods, leading to a reduction in purchase costs.
Merchandise Inventory
The goods a company holds in stock with the intention of selling them as part of its business operations.
Freight-In
Freight-in refers to the shipping cost associated with getting goods delivered from suppliers to the buyer, often included in the inventory cost of purchased goods.
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