JAMB Accounting 2007 Objective — Question 10

Question 10 of 46 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2007 Objective paper, with the correct answer and a full explanation.

In the trading and profit and loss account of a manufacturing organization, purchases is

A. always the same amount as the total cost of goods manufactured
B. given separately
C. equivalent to the total cost of goods manufacturedCorrect
D. always the same as the prime cost

Explanation

The cost of goods produced/manufactured in a manufacturing account is equivalent (transferred) to the cost of goods manufactured figure used in the trading account.

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