The Costs of Goods Acquired from Suppliers Including Incoming Freight

question 120

Multiple Choice

The costs of goods acquired from suppliers including incoming freight or transportation costs are:

• A)purchasing costs
• B)ordering costs
• C)stockout costs
• D)carrying costs

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Definitions:

Cost of Merchandise Sold

The direct costs attributable to goods sold by a company, including the purchase price of merchandise, freight, and handling charges, less any discounts received.

Retail Business

A business entity that sells goods or services directly to consumers.

Service Business

A business that provides intangible products or services to customers.

Gross Profit

The difference between sales and the cost of goods sold, representing the profit from buying and selling goods before other expenses are taken out.