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WAEC Financial Accounting 2006 Question 50

Question 50

Manufacturing Accounts

Which of the following is not classified as an overhead?

  1. A.Factory rates
  2. B.Factory power
  3. C.Factory building extension
  4. D.Factory depreciation
Show the answer and explanation

Answer: C (Factory building extension)

Explanation

Extending the factory is capital expenditure, not an overhead.