Question

Carriage outword is an example of

Answer 1

Answer:

Carriage outward is an example of overhead.

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Answer 2

ANSWER :

★ Carriage Outward is an example of distribution overhead.

• ➺ Carriage Outward is the transportation cost paid by the seller of goods or provider of service to its customers. In other words,Carriage Outward refers to as the shipping and handling costs incurred by a business for the purpose of delivery a goods to the customer.

• ➺ Carriage Outward is also known as Carriage on Sales, Sales Carriage, Transportation Out, Freight Out, Delivery Expenses etc.

• ➺ Carriage Outward is an expenses of indirect nature. It is because, these types of expenses are not directly related to purchase of goods and bringing them into saleable conditions.

• ➺ Carriage Outward is an indirect expenses related to selling and distribution expenses.

• ➺ The amount of Carriage Outward can never be capitalized and incurrence of Carriage Outward impacts the net profitability of the business.

• ➺ While preparing final accounts, Carriage Outward is shown in the debit side of Profit and Loss Account.