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JAMB Principles of Accounts 2002 Question 17

Question 17

Departmental Accounts

In a departmental accounting system, which of the following expenses will most likely be apportioned on the basis of turnover?

  1. A.carriage outwards
  2. B.carriage inwards
  3. C.discounts received
  4. D.returns outwards.
Show the answer and explanation

Answer: A (carriage outwards)

Explanation

Carriage outwards is a selling cost, so it is shared in proportion to each department's sales (turnover).