Freight costs incurred by a seller on merchandise sold to customers will cause an increase in the selling expenses of the buyer. to the cost of goods sold of the seller. in operating expenses for the seller. to a contra-revenue account of the seller.

Question

Cory Cisneros

Business

6 May, 20:23

Freight costs incurred by a seller on merchandise sold to customers will cause an increase in the selling expenses of the buyer. to the cost of goods sold of the seller. in operating expenses for the seller. to a contra-revenue account of the seller.

+3

Answers (1)

Know the Answer?

Carson Arroyo · Answer 1

Option B In operating expenses for the seller.

Explanation:

The reason is that freight cost are incurred for packaging the product to make it available for the buyer in its surrondings so the freight management is an operational acitvity and this cost is an operating cost which is very important for the company to operate in the business environment (Stay in business).