passwella.
Menu

WAEC Financial Accounting 1991 (August) Question 33

Question 33

Manufacturing Accounts

In a manufacturing organization, which of the following expenses does not relate to cost of production?

  1. A.Materials consumed
  2. B.Direct labour
  3. C.Direct overhead
  4. D.Administration overhead
  5. E.Work-in-progress.
Show the answer and explanation

Answer: D (Administration overhead)

Explanation

Administration overheads go to profit and loss, not to the manufacturing account.