In Calculating Cost of Goods Sold, Meg Malloy Noticed That

Multiple Choice

In calculating cost of goods sold, Meg Malloy noticed that her accounting software included the freight charges on purchased goods. Your response to this procedure is:

A) Freight charges are a legitimate part of cost of goods sold.
B) Freight charges should be subtracted as part of general expenses.
C) Freight charges cannot be deducted as an expense on the income statement.
D) Freight charges are part of revenues.