Freight-In Is Treated as an Addition in the Cost of Goods

question 165

True/False

Freight-in is treated as an addition in the cost of goods sold section of the income statement.

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Definitions:

Common Law

A body of law developed through court decisions over time, as opposed to laws enacted by legislatures (statutory law).

Rescission

The act of cancelling a contract and returning all parties involved to their positions before the contract was made.

Incidental Damages

Compensation for reasonably foreseeable losses caused indirectly by a breach of contract, such as costs incurred to mitigate damages.

Justifiably Withheld

A legal or logical reason to retain, not disclose, or postpone something such as information or payment.