Which of the following costs is not included as inventory on the balance sheet?

A) Raw materials to be used in the manufacturing process.
B) Work in process.
C) Finished goods.
D) Freight-out costs for finished goods sent to retailers.

Freight-out Costs

Expenses associated with the delivery of merchandise from a seller to a buyer; also known as shipping costs or delivery expenses.

Inventory

Inventory represents the goods and materials a business holds for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time.