1.Can any one post your views on treatment of Packing materiials in cost Accounts i.e How a primary packaging cost and a secondary packaging cost is treated in cost accounts
2.What is meant by Principal Budget Factor?
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Treatment in cost accounts
Replies (3)
Primary packing material should be added to the cost of raw material consumed where as the secondary packing material should be taken in the selling & distribution expenses..
Thanks Ms Geetha for Your reply and can u get an answer for the second question namely principal budget factor
Principal budget factor means that factor which is in short supply or limits the activities of organisation, during prepration of budget. It is also termed as key factor. eg are raw material, skilled labour are in short supply
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