Multiple choice

Directions: Choose the correct option for the given question.

Primary packing is an item of

  1. selling overhead

  2. prime cost

  3. distribution overhead

  4. work cost

  5. cost of sales
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Primary packing is essential to make the product saleable or to contain it for use. Therefore, it is considered a direct expense and part of the prime cost.

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