Distribution overhead, also known as distribution cost or distribution expense, refers to the costs incurred in delivering a product to the customers. These costs are a key component of cost classification in businesses.
Materials handling involves the moving, packaging, and storing of raw materials, in-progress inventory, and finished goods within a business, including shipping, receiving, and processing operations.
The primary package is the immediate container of a product which is in direct contact with the goods and is used for the final consumer sale. For example, a bag of potato chips is the primary package, while the carton in which the bags of potato chips are shipped is the outer package.
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