Which financial item would you use to show shipping and handling on an invoice?

• A. Subtotal
• B. Payment item
• C. Other charge
• D. Group items

Answer: (C)

Shipping and handling is a charge that isn’t a product or standard service item, so it should be shown as its own line item on the invoice. The best choice is an Other charge item because this type is specifically for miscellaneous charges like shipping, delivery, or handling. Using it keeps the invoice clear by listing the extra cost separately, supports accurate tax handling if needed, and makes reporting straightforward. Subtotal isn’t a separate line item you can label for charges—it’s just a total of the existing items. A payment item records money received, not charges. Group items combines multiple items into one line and isn’t appropriate for adding a separate shipping charge.