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JAMB Principles of Accounts 1999 Question 26

Question 26

Manufacturing Accounts

Manufacturing costs can be classified based on

  1. A.timing of charges, degree of averaging and size of capital
  2. B.degree of averaging, ease of traceability and timing of charges
  3. C.degree of averaging, size of floor space occupied and cost accounts
  4. D.number of employees, timing of charges and management style.
Show the answer and explanation

Answer: B (degree of averaging, ease of traceability and timing of charges)

Explanation

Costs are classified by how easily they are traced to products (direct/indirect), by averaging, and by when they are charged (product/period).