Where are shipping and handling costs included on Aunt Millies Bakeries' consolidated statements of income?

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost. These costs are included in the delivering and selling expenses line item on the consolidated statements of income.

For a prospective Aunt Millies Bakeries franchisee, this means that the costs of shipping and handling products to customers are considered part of the expenses related to delivering and selling the product. This is a standard accounting practice, where all costs associated with getting the product to the customer are grouped under selling and delivery expenses.

Understanding where these costs are accounted for can help a franchisee better analyze the company's financial statements and understand the true cost of delivering products to customers. This information is useful for budgeting and financial planning.