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WAEC Financial Accounting 2003 Question 11

Question 11

Departmental Accounts

Which of the following is the basis for apportioning rent among departments?

  1. A.Sales
  2. B.Floor area
  3. C.Number of employees
  4. D.Direct labour cost
Show the answer and explanation

Answer: B (Floor area)

Explanation

Rent relates to space used, so it is shared by floor area.