Is freight-in an asset

Answer 1

Freight-in is not considered an asset; rather, it is an expense that relates to the cost of transporting goods purchased by a company. This cost is typically included in the cost of inventory on the balance sheet until the inventory is sold. Once the inventory is sold, the freight-in cost contributes to the cost of goods sold (COGS) on the income statement. Therefore, while it affects the value of inventory, freight-in itself is classified as an expense in accounting terms.