ECONOMICS

Detailed explanation-1: -Fancy packing is done to get more attraction of customer for sale. Its an indirect expenses and to hit the cost of selling expenses.

Detailed explanation-2: -If the packaging is considered a material, it would likely fall under the ‘Materials’ expense category. This would be the case if the packaging is something that is used up or consumed in the production of the product, and is not considered a separate item in itself.

Detailed explanation-3: -Some common examples of direct costs include: Raw materials. Machinery or plant needed for production or delivery. Packaging and shipping costs.

Detailed explanation-4: -The expenses incurred on packing of goods to make the goods for salable purpose or for transportation purpose or for safety of goods purpose, are booked under packing charges account. Packing charges includes the material used for packing and the labor charges paid in respect of packing of material.

Detailed explanation-5: -Packing expense are part of selling & distribution expenses and debited to profit & loss account.