Question

Carriage Inwards is shown in the statement of profit and loss under ___________ .

• A. cost of materials consumed
• B. other expenses
• C. employees benefit expenses
• D. any of the above

Answer 1

The correct option is A cost of materials consumed

Carriage is the expense that is incurred when the goods are transported. Carriage inwards are the costs that are incurred by the buyer at the time of purchase of goods, These are the direct expenses related to procuring of goods and hence would be included in the cost of material consumed or say in the cost of the inventory.