Shipping/Freight Question for the Accountants

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July 26, 2021

by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Los Angeles, CA, USA

If one chooses to record shipping/freight etc. related to inventory as an amortized cost and prorates it to inventory/records it in COGs.....When calculating EBITDA should that amortized component of shipping be added back to earnings?

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