ACCA FA · Chapter 11 · Question 11 of 12
In a statement of profit or loss, where should carriage outwards be presented?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) As a distribution cost
Explanation
Carriage outwards is the cost of delivering goods to customers, so it is a selling and distribution expense. Carriage inwards, in contrast, is part of the cost of purchases and is included in cost of sales.
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