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Can someone provide a discussion response for the information below? Thanks in advance!
Professor
Transportation-in or freight-in costs are part of the cost of goods purchase.The cost of goods (or any asset) includes all costs necessary to get an asset in place and ready for use. Freight-in is associated with transportation of the items purchased. This is why freight-in was added to the net purchases while Transportation-out or freight-out costs are not product costs and are not inventoriable. Transportation-out costs are costs of selling the products and will appear as a selling expense (perhaps as Delivery Expense) in the period in which they occur.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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