Many merchandising firms charge the entire amount of transportation costs to cost of goods sold. Other merchandising firms perform a year-end allocation to distribute the cost between the inventory...

Many merchandising firms charge the entire amount of transportation costs to cost of goods sold. Other merchandising firms perform a year-end allocation to distribute the cost between the inventory and cost of goods sold. How might firms justify not tracing transportation costs to individual products and flowing these costs through the inventory accounts?



May 26, 2022
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