Question: Why is it inappropriate for a company to include freight-out expense in the Cost of Goods Sold account?

Why is it inappropriate for a company to include freight-out expense in the Cost of Goods Sold account?

Step by Step Solution

★★★★★

3.42 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Freightout expense is not a cost associate... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

107-B-M-A-I (1012).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Q:

LearnCo LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model, The company began operations on January 1, 20Y1, and is...

Q:

Why is it necessary for a company to disclose subsequent events? What kinds of subsequent events are disclosed by an adjustment to the companys financial statements and what kinds are disclosed in a...

Q:

Why is it advantageous for a company to finance its receivables?

Q:

Why is it inappropriate for a company to include freight-out expense in the Cost of Goods Sold account? 2 answers

Q:

In its first month of operations, Minh Lo Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9. Assuming there are...

Q:

Why is it inappropriate for a company to include freight-out expense in the Cost of Goods Sold ac- count?AppendixLO1

Q:

1)Martinson Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The following data represents data in the Finishing Department:Finishing...

Q:

1)Martinson Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The following data represents data in the Finishing Department:Finishing...

Q:

58)Cooper's Bags Company manufactures cloth grocery bags to be sold to grocery stores and other retailers. Cooper's Bags Company sells the bags in cases of 1,000 bags. The bags come in three sizes:...

Q:

**Please answer all of the questions** One answer doesn't help me 58)Cooper's Bags Company manufactures cloth grocery bags to be sold to grocery stores and other retailers. Cooper's Bags Company...

Q:

The stockholders meeting for Harris Corporation has been in progress for some time. The chief financial officer for Harris is presently reviewing the companys financial statements and is explaining...

Q:

What are the financial implications of a situation in which the debits to aggregated Estimated revenues are less than the aggregated credits to Appropriations?

Q:

Which one of the following cash flows should not be included in the analysis of a new product? Increase in accounts payable related to purchasing inventory of the new product. Money already spent for...

Q:

Which role does the family play in coping with insecurities?

Q:

The gross earnings of the factory workers for Vargas Company during the month of January are $66,000. The employers payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by...

Q:

The gross earnings of the factory workers for Vargas Company during the month of January are $66,000. The employers payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by...

Q:

A job order cost sheet for Lowry Company is shown below. Instructions (a) On the basis of the foregoing data, answer the following questions. (1) What was the balance in Work in Process Inventory on...

Q:

As stated in your text, "A longer time horizon when investing in a portfolio of stocks and treasury bills and the law of averages is thought to imply that because of its positive risk premium, the...

Q:

(Related to Checkpoint 4.1) (Liquidity analysis) The most recent balance sheet of Raconteurs, inc., (in millions) is found here: a. Calculate Raconteur's' current ratio and acid-test (quick) ratio....

Q:

Riverbed Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. Analyze the transactions using the...