The correct answer is: A. production cost
Packing cost is a production cost because it is incurred in the process of manufacturing a product. It includes the costs of materials, labor, and overhead associated with packing the product for shipment.
Selling costs are incurred in the process of selling a product. They include the costs of advertising, sales commissions, and customer service.
Administration costs are incurred in the overall management of a business. They include the costs of salaries, office rent, and utilities.
Distribution costs are incurred in the process of getting a product from the manufacturer to the customer. They include the costs of shipping, warehousing, and inventory management.