PRC-1 · Chapter 7 · Question 77 of 100
Which of the following costs is treated as a period expense rather than being capitalized into the cost of ending inventory?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Carriage outwards
Explanation
Carriage outwards (freight out) is a selling and distribution cost incurred to deliver goods to a customer. It is a period expense and is excluded from the cost of inventory.
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