Handling costs

Handling costs are incurred when a business moves goods from storage and prepares them for delivery to the customer. Thus, these are costs incurred during the time period from when goods leave storage to when they are delivered to the shipper. When services are being provided instead of goods, handling costs can refer to the administrative costs associated with an order. Handling costs may be absorbed by the seller, or they may be included in the shipping and handling costs line item on customer billings.