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JAMB Principles of Accounts 2003 Question 25

Question 25

Departmental Accounts

Advertising expenses incurred on a product in a business organization should be charged to

  1. A.production department
  2. B.sales department
  3. C.administration department
  4. D.purchases department
Show the answer and explanation

Answer: B (sales department)

Explanation

Advertising is a selling cost, so it is charged to the sales department.