I'm coming from non-accounting and non-finance backgrounds. I need help in form of understanding through a question.
When a company sends items to club members but is charged for shipping fees from a third party, and the company is reimbursed that cost by the club member, is said cost counted as part of the COGS or no? I would assume no as that shipping cost is included in the cost of membership? Therefor counted towards total revenue? But say the company instead decides to incur the total shipping cost, would that now count towards COGS? Got very lost when trying to attempt to understand some accounting articles.