Packing Charges

Packing charges is direct exp or indirect exp?

We made some products pack them & dispatch to customer. we add packing charges in Sale Bill.

Where we have to book packing exp in profit &  loss a/c in the head of direct exp or indirect exp.

 

   

Replies (8)
Quick Summary
This discussion explores whether packing charges should be classified as direct or indirect expenses. Participants debate booking these costs in the profit and loss account, considering factors like whether the packaging is essential for the product itself or for transportation. The consensus leans towards direct expenses when directly related to the product's sale and dispatch, while ancillary packaging might be considered indirect.

Direct Expenses
It will comes under Direct Expenses
At the time of account finalisation will packing charges are add in our indirect income !

Not income, but expense. All sales and distribution xpenses are direct costs. Special packaging is indirect costs, eg., tubes required to pack toothpaste is direct, while other wrappings extra for transportation is indirect expenses. First me to production expenses and secondary packing is fixed costs So add these expenses to distribution expenses.

Thank you so much every one

it will be direct expenses

we are purchasing any item and Packiing charge has been charged by Seller on Machinery, It will be indirect expenses or direct expenses 

WCM-world class management segregates stuff from direct stuff.  I dont have the resource readily available right now but Its a direct expense but what about the glue??? Tomorrow

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