Question

43. Secondary packing expenses are:
(A) Part of prime cost
(B) Part of production overheads
(C) Part of distribution overheads
(D) Written-off to costing profit and loss account​

Answer 1

Answer:

this question of answer is option no c

Answer 2

The correct answer is OPTION C: Part of Distribution Overhead.

• The cost of generating sales and keeping customers, according to the Institute of Expense and Management Accountants.
• Furthermore, distribution overheads are defined as the cost of the entire process, from product packing through the reconditioning of returned empty packets for re-use.
• Distribution overheads are the expenses incurred between the time a product is manufactured and the time it is distributed to end customers.
• A few examples are warehouse rent, packaging charges, carriage on sales, delivery truck upkeep, and utilities.