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

Question:

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

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting Tools for business decision making

ISBN: 978-0470095461

4th Edition

Authors: kimmel, weygandt, kieso

Question Posted: Mar 02, 2012 02:07 AM

See More Questions

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...
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...
Why is it advantageous for a company to finance its receivables?
The probability that fewer than 35 people support theprivatization of Social Security A discrete random variable is given. Assume the probability of the random variable will be approximated using the...
Condensed data from the comparative statement of financial position of Dressaire Inc. follow: Instructions (a) Using horizontal analysis, calculate the percentage of a base-year amount, using 2013 as...
You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company's interest expense for the year ended December 31, 2021. Your accounting group provided...
A randomized-block experiment is run with three treatments and four blocks. The three treatment means are $\bar{y}_{1}=6, \bar{y}_{2 \bullet}=7$, and $\bar{y}_{3 \bullet}=11$. The total...
Singapore Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $60,000, the accumulated...
A loop of diameter d = 12 cm, carrying a current I = 0.4 A is placed inside a magnetic field = (0.2 T)i + (0.4 T) j. The normal to the loop is parallel to the unit vector n=0.61-0.81 .What is the...
1. Why is Big Data a big deal for eBay? 2. What were the challenges, the proposed solution, and the obtained results? 3. Can you think of other e-commerce businesses that may have Big Data challenges...
What cost flow assumption may be used under the lower-of-cost-or-market basis of accounting for inventories?
What is risk in the context of financial decision making?
Dielectric breakdown occurs in a material whenever the magnitude of the field E exceeds the dielectric strength anywhere in that material. In the coaxial capacitor of Example 4-12, (a) At what value...
The Burj Khalifa in Dubai has 163 floors. Compare the gravitational field in a room on the ground floor and one on the $163^{\text {rd }}$ floor.
Why might a person who does not have a job not be unemployed?
What does ancient DNA evidence contribute to the debate over the origin of humans?
How do Homo sapiens behavior and tools differ from earlier hominins?
What is meant by the term fundamental analysis?
Why has Delta Air Lines added a mix of new and used aircraft to its fleet?
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $340,200. Stinson's book value on that date consisted of common stock of $100,000 and...
Find the interpolating polynomial for the function defined by the following table: 0 f(x) 5 x 1 4 2 -3 3 -4
Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $12; direct labor $8; variable manufacturing overhead $6; fixed manufacturing overhead...
Hannon Corporation produces high-performance rotors. It expects to produce 50,000 rotors in the coming year. It has invested $10,000,000 to produce rotors. The company has a required return on...
Morales Corporation produces microwave units. The following per unit cost information is available: direct materials $36; direct labor $24; variable manufacturing overhead $18; fixed manufacturing...
Alice is single and self-employed in 2023. Her net business profit on her Schedule C for the year is $192,800. What are her self-employment tax liability and additional Medicare tax liability for...
D.L. Ko and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competition has led Mr. Ko, the president, to believe...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and...

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

Question:

Step by Step Answer:

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

Accounting Tools for business decision making

Students also viewed these Managerial Accounting questions