Use the Home Depot 2009 financial statements in Appendix A at the end of this textbook. Read

Question:

Use the Home Depot 2009 in Appendix A at the end of this textbook. Read note 1 to the that summarizes significant accounting policies for Home Depot. Read the section titled “Cost of Sales” on page A-9. Explain how Home Depot classifies some transportation, shipping, and handling costs as period expenses and others as product costs. On what basis does it distinguish between shipping or transportation costs that are period expenses and those that are product costs?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...