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WAEC Financial Accounting 2025 Question 10

Question 10

Manufacturing Accounts

Which of the following expenses forms part of cost of production?

  1. A.Selling expenses
  2. B.Administrative expenses
  3. C.Direct expenses
  4. D.General expenses
Show the answer and explanation

Answer: C (Direct expenses)

Explanation

Direct expenses are part of prime cost, so they are in the cost of production; selling, administrative and general expenses go to profit and loss.