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Packaging materials
Accountancy
Is packaging materials (boxes, bags) considered as inventory ??
Answers (3)
Pacakaging materials are classified as primary and secondary. The primary packaging materials are those that are required for sale of product (eg - Plastic Wrapper for chips). While, the secondary are to protect the product from damage or used to bring all products together (eg - Carton box for chips)
Vignesh Venkatesan
Pacakaging materials are classified as primary and secondary. The primary packaging materials are those that are required for sale of product (eg - Plastic Wrapper for chips). While, the secondary are to protect the product from damage or used to bring all products together (eg - Carton box for chips)
Thus, primary packaging materials are a part of inventory while secondary packaging are not a part of inventory