Power and fuel and freight

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hardik shah (Querist)
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21 October 2013 power and fuel should be treated as direct or indirect exp.?

what is the difference between the freight inward and freight outward ?

Sanket

Sanket (Expert)
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21 October 2013 Cartage/freight inward is the same as
transportation-in and is part of
purchases. If you're using the perpetual
inventory method, it's part of
merchandise inventory. Consequently, it
will eventually become part of COGS.
Cartage/freight outward is the same as
transportation-out or delivery expense
and is a selling or distribution expense.
It's among the operating expenses
which come after the gross profit line.