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WAEC Financial Accounting 2011 Question 12

Question 12

Departmental Accounts

In departmental accounts, rent is apportioned on the basis of

  1. A.purchases
  2. B.floor area occupied
  3. C.number of personnel in each department
  4. D.volume of sales
Show the answer and explanation

Answer: B (floor area occupied)

Explanation

Rent is paid for space, so it is shared by floor area.