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WAEC Financial Accounting 2018 Question 22

Question 22

Manufacturing Accounts

The wages of an office cleaner is classified as

  1. A.direct labour cost.
  2. B.direct expenses.
  3. C.factory overheads.
  4. D.administrative overhead.
Show the answer and explanation

Answer: D (administrative overhead.)

Explanation

An office cleaner works in administration, not the factory, so the wage is an administrative overhead.