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


prepaid insurance income statementnsf chequesprepaid expense journal entryaverage account payable formulareceivable turnover days formulaspecial journals and subsidiary ledgersnet operating asset turnover formulapetty cash normal balanceaverage settlement period for trade payablesnotes payable journal entryexcel function pmtlabor efficiency variance calculatorsundry expenses meansbill of discountinggeneral ledger exampleunrealized gain accounting200 declining balance methodoverheads in cost accountingaccounting for accrued expensesconsignment accounting journal entrieshire purchase journal entriesaccrued service revenue journal entryaccounts receivable debit or credit balancestockholders equity balance sheet examplefuture value of perpetuitywhere do you put accumulated depreciation on a balance sheetaccounting worksheet excel templatezero based budgeting advantagesdeferred revenue purchase accountingvariable cost revenue ratiorecognition of unearned revenuegross fixed assets formulamanufacturing overhead is applied to each jobconsignment sales revenue recognitiondefine cushionsadjustments for unearned revenuebonus method partnership accountingaccruals and deferred income definitionmulti step income statement templateaccounts receivable interview questions and answersgarnished definitionpresent value of growing perpetuityinsurance paid in advance journal entrycalculate common stockholders equitypercentage of completion method journal entriesmarkup on selling price vs markup on costbills receivable definitionmeaning of payback periodcalculate the future value of an annuityintroduction to double entry bookkeepingjournal entry for account payablepresent value of lease payments formulapmt mortgagesimple annuity formuladouble accounting definitionaccounts receivable forms templatesaccounts receivable days ratioadvantages of double entry accountingcontra receivabletransfer of receivables with recourseallowance for uncollectible accounts t accountexamples of adjusting journal entriesentry for accrued incomegoods held on consignment areaccounting worksheet templateequation rearranger onlineweighted average cost inventory formulaspreadsheet for small businessfob transportationhow to calculate depreciation expensejournal entry for unearned revenueexcel pmt examplebookkeeping meaning and definitionwhat is sundry assetshow to calculate coverage ratioinventory turnover ratio formulaaccounts payable assessment testhow to compute gross profitcalculate fvfree printable ledger balance sheet