Shipping costs are part of the distribution or sales costs in a company’s cost accounting. In a functional sense, shipping includes all activities required for the physical distribution of market-ready products. These activities include:
Picking items to form shipment units based on orders or customers
Selecting appropriate shipping packaging and performing the packing process
Scheduling shipments in accordance with promised delivery times
Defining shipping terms in coordination with sales or customers
Preparing shipping documents based on delivery conditions
Handing over the packaged goods to the chosen shipping service provider