Sorry i did not see this thread and step in far earlier. I have deleted a bunch of totally off-topic posts.
(1) Long answer to a short question:
Those who have taken my course are referred to Lesson 16, pages 130 ("Dressing and Fixing") and 132 ("Oiling and Powdering") for references to the use of "powders" (powdered herbs, sachet powders, and incense powders) as candle dressings.
Those who have worked with free-standing candles or who are students of mine should know that what Sunstallion is asking makes very good sense.
The problem is that Sunstallion did not mention at the outset that these are free-standing candles, not vigil lights. For those raised on vigil lights, or who have not taken my course, or who have forgotten their course lessons, allow me to explain: It is very common to heavily oil a candle and coat it with powdered herbs, sachet powder, or powdered incense. This is done ALL THE TIME by many practitioners. It is not unusual or unique to Sunstallion.
Due to this basic misunderstanding, the thread gave rise to repeated posts of confusion (most of which i have deleted) -- folks assumed (wrongly) that the candles were vigil lights, and thus told Sunstallion that too much oil would drown the flame, too much incense would create ash that would suffocate the wick, etc. I deleted most of those comments because they are not true of freestanding candles -- and, just as Sunstallion described, the oil and incense will roll down the candle sides and accumulate in a pile.
So, to my reply:
Yes, it is fine to touch off the remaining incense with a match or a taper-light in the bottom of a brass or other metal candle holder. Do NOT do this in a glass holder, of course -- but, Sunstallion, you seem experienced enough not to be using glass holders in the first place. Setting off the incense as a last offering is fine -- but emptying it out and scattering it or burying it (according to the nature of the work being performed) would also be okay.
I generally do exactly as you propose: i touch it off with a light. But instead of using a series of short matches (which tend to build up the stink of sulfur as they are repeatedly lit), what i use is a long wooden fireplace match, ignited from the last of the flame of the candle. The fireplace match will burn for a long time. Whatever i cannot set alight, i just dispose of in the normal way.
2) Since the issue was one of free-standing candles, the suggestion to re-use the plastic wrap we send out with vigil lights, though accurate and well-intentioned, is not relevant.
Again, in answer to the question, insofar as it regards free-standing candles, i was taught to use a brown paper bag to wrap a candle that was to be put away or hidden between sections of burning -- but if the candle can remain on the altar, then there is no need to cover it, and it can remain in place.
The way you choose to work this -- hiding the candle versus leaving the candle on the altar, would merely be a reflection of your living circumstances, and thus would not affect your magical work, in my opinion.