VB Specialty Foods,a Grocery Merchandiser,purchased Goods and Paid Transportation to Bring

question 15

Multiple Choice

VB Specialty Foods,a grocery merchandiser,purchased goods and paid transportation to bring them to the company warehouse.The transportation cost is known as ________.

• A)freight out
• B)selling expense
• C)freight in
• D)cost of goods sold

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Definitions:

Lemonade Stand

A small, temporary drink stand often run by children, where lemonade is sold, typically as an introduction to business principles.

Transfer Price

The price at which goods, services, or intellectual properties are traded between different divisions within the same company.

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.