what-are-the-implications-of-freight-costs-on-inventory-valuation-under-fob-ship

Question

What are the implications of freight costs on inventory valuation under FOB Shipping Point terms?

Accepted Answer

Freight costs increase inventory valuation as they are capitalized.

Answer

Freight costs have no impact on inventory valuation.

Answer

Freight costs decrease inventory valuation as they are expensed.

Answer

Freight costs are recorded as liabilities, affecting inventory valuation.