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WAEC Financial Accounting 1998 Question 33

Question 33

Manufacturing Accounts

Which of the following is an example of production overhead?

  1. A.Discount allowed
  2. B.Carried inwards
  3. C.Factory rent
  4. D.Carriage outwards
  5. E.Depreciation of office equipment.
Show the answer and explanation

Answer: C (Factory rent)

Explanation

Factory rent is an indirect cost of production.