CAS-9: Packing Material Cost

• Primary and secondary packing, and where each goes (§§4.11, 6.4, 6.5)
• Pricing packing; usual, unusual and free items (§5)
• Reusable packing (§6.3)
• The finished Stage 2 cost card

Chapters

1. A bag for the child, a carton for the lorry · Packing the customer keeps is part of making the product; packing for the journey is not (§§4.11.3, 4.11.6, 6.4, 6.5)
2. Torn, misprinted and free · Price the bags like any material, and decide about the problem bags (§§4.1, 4.8, 5.1, 5.4, 5.6, 5.7)
3. Crates that come back · Share the cost of reusable packing over the trips it makes (§§4.11.4, 6.3)
4. The Stage 2 cost card is complete · Put Stage 2 together: what one uniform costs so far (§§6.4, 6.5, 7)
5. Spot the mistakes in the packing cost · Use everything from this lesson (§§4.1, 5.4, 6.3, 6.5)

Key terms

• Primary and secondary packing (§§4.11.3, 4.11.6, 6.4, 6.5): Primary packing is needed to hold and keep the product for the user (a medicine strip, a uniform’s poly bag): part of the cost of production. Secondary packing helps store, move or advertise it (cartons, crates): part of distribution cost.
• Pricing packing material (§§5.1–5.8): Price what you buy at the cost of getting it in, less discounts and tax you get back. Usual losses stay in; unusual losses (like a misprint) stay out; packing someone gives you free is not added; scrap sold is taken off.
• Reusable packing (§§4.11.4, 6.3): Packing used more than once, such as crates or returnable bags. Its cost is shared over the number of uses expected, or the months it will be used.