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Question

________is a part of selling and distribution expenses.

A
Packing expense
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B
Audit fee
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C
Factory rent
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D
Legal expense
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Solution

The correct option is A Packing expense
Packing expenses are incurred for packing the material. It is an indirect cost as it is used to pack the product.
Packing expense are part of selling & distribution expenses and debited to profit & loss account.

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