Packing expenses

Cost of primary packing necessary for protecting the product
or for convenient handling, should become a part of the prime cost. The cost of packing to
facilitate the transportation of the product from the factory to the customer should become
a part of the distribution cost. If the cost of special packing is at the request of the
customer, the same should be charged to the specific work order or the job. The cost of
fancy packing necessary to attract customers is an advertising expenditure. Hence, it is to
be treated as a selling overhead.