The Term "Freight Out" Refers to ________

question 77

Multiple Choice

The term "freight out" refers to ________.

• A) transportation costs on purchases
• B) cost of inventory purchased
• C) costs that are not actually paid in cash
• D) transportation costs on sales

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debt.

Note Payable

A written promise to pay a specific amount of money, usually with interest, by a certain date, representing a form of debt.

Times Interest Earned

A ratio assessing a firm's capability to fulfill its debt responsibilities through the comparison of its earnings before interest and taxes against its interest expenditures.

Company's Risk

Refers to the inherent uncertainties and potential financial losses a company faces in the course of its operations.