What is Delivery Expense?

Delivery expense is a general ledger account, in which is stored all freight out expenses incurred by a business. Expenses that may be stored within this account include the costs of fuel and fees paid to third-party transport services.

Presentation of Delivery Expense

The delivery expense account may be included within the cost of goods sold line item in the income statement. Only in rare cases is it stated separately - usually when a small business includes every account in its income statement. It might also be stated separately when the delivery expense constitutes a large proportion of the cost of goods sold.