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WAEC Financial Accounting 2001 Question 31

Question 31

Branch Accounts

The head office usually issues goods to branches at

  1. A.prime cost
  2. B.production cost
  3. C.net realisable value
  4. D.cost price.
Show the answer and explanation

Answer: D (cost price.)

Explanation

Of the options given, goods are charged to branches at cost price (or cost plus a mark-up).