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WAEC Financial Accounting 2009 Question 41

Question 41

Manufacturing Accounts

The depreciation on plant acquired by a manufacturing company is treated as

  1. A.prime cost
  2. B.administrative expenses
  3. C.factory overhead
  4. D.selling and distribution expenses
Show the answer and explanation

Answer: C (factory overhead)

Explanation

Plant is used in the factory, so its depreciation is an indirect factory cost (factory overhead).