Freight Out

What is Freight Out?

Freight out is an expense for a business and is part of the income statement. It is the cost to a business of shipping its products to its customers.

In the income statement, freight out is included as a variable cost under cost of goods sold as it is only incurred if a product is sold to a customer.

In freight out accounting, a business may recharge the customer indirectly by increasing the selling price of the product to allow for freight out, or it might directly recharge the customer for the actual cost. If the freight out is recharged, then the income received from the customer can be netted off against the freight out expense to give a net freight out cost.

Freight out is sometimes referred to as carriage outwards.

For additional information on freight out and FOB shipping costs see our freight out tutorials, or for further information see the Wikipedia definition.

Learn a new bookkeeping term

Random bookkeeping terms for you to discover.

Link to this page

Click in the box and paste this freight out definition link to your site.

Return to the Dictionary

Freight Out March 23rd, 2016Team

You May Also Like


Related pages


formula for npv in exceldupont analysis formulapresent value of annuity table pdfbookkeeping paper templateclosing journal entries exampleweighted average method accounting formulabookkeeping salarydouble entry for debtorsformula for calculating debt equity ratioaccounting prudenceflat rate to apr converterdays accounts receivable formulainterest on investment journal entryaccounts journal entries basicshow to calculate interest rate implicit in the leasebookkeeping ledger templateunearned revenue debitcalculating cvpvertical analysis balance sheet examplehow to compute cost of goods manufacturedbank account ledger templateaccounting general journal templatewhat is liquidity ratio formulaaccounting basics debits and creditsfob destination vs fob originwhat is bookkeeping to trial balancegeneral entries general ledger examplesadjusting entries journaldebits and credits testdegree of operating leverage calculationaverage account payable formulatally journal entriesoperating cycle in accountingturnover calculatorexample of a general ledgerhow to maintain cash book and ledgerprintable petty cash logaccounting system flowchartaccounts receivable turnover formulapurchases ledgerpv formula in exceltotal gearing ratiojournal entry unearned revenueallowance method accountingworking out margin calculatorquick assets divided by current liabilities is theexamples of bookkeepingincome statement contribution margin formatentry for allowance for doubtful accountsgearing ratio definitionopposite of deferred revenuewhat are ledgers in accountingincome statement spreadsheetskillcheck online testingdeferred tax expense journal entryimpress accountaccounting entries for income taxwhat is provision for doubtful accountsrestaurant accounting chart of accountsaccrued interest adjusting entrybalance sheet reconciliation templateimplicit interest ratereversing accrued expenseswhat is debtors control accountamortized bondsannual equivalent rate formulaannuity due calculatoramortisation in accountingwhat is npv in excelincorporation cost accounting treatmentcapital lease interest rate calculatoraccounting equation questions and answerscalculate mirr onlinedeclining balance interest calculatorasset turnover formula