CA Inter P4 · Chapter 6 · Question 4 of 9
In a cost sheet, the cost of primary packing (packing without which the product cannot be sold, such as a bottle for a soft drink) is treated as part of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Cost of production
Explanation
Primary packing is essential to make the product saleable, so it is included in the cost of production. Secondary packing, which is used mainly for transport or display and promotion, is treated as distribution or selling overhead.
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