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WAEC Financial Accounting 2005 Question 22

Question 22

Manufacturing Accounts

Which of the following is a factory overhead?

  1. A.Depreciation of plant and machinery
  2. B.Royalties
  3. C.Raw materials consumed
  4. D.Carriage outwards.
Show the answer and explanation

Answer: A (Depreciation of plant and machinery)

Explanation

Depreciation of factory plant is an indirect production cost.