Question

carriage outward is an example of overhead​

Answer 1

Explanation:

Carriage outwards is the expense incurred on the carriage of goods sold out, since it is not related to manufacturing, it is not included in the trading account. It is the overhead expense and is debited to the profit and loss account.

Answer 2

Carriage outward is an example of overhead:

• The shipping and handling fees incurred by corporation shipping products to a client are referred to as carriage outwards.

• This cost may be billed to customers; if not, the cost should be charged to expense in the period in which it was incurred.

• As a result, the cost of carriage outwards should be included in the income statement during the same reporting period as the selling transaction.

• In most cases, the cost of carriage overseas is included in the income statement's cost of goods sold line.