JAMB Accounting 2007 Objective — Question 25

Question 25 of 46 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2007 Objective paper, with the correct answer and a full explanation.

Stock valuation is useful because it informs the sales department on the

A. prices of competing goods
B. number of goods that will affect profitabilityCorrect
C. number of goods to produce
D. the number of goods to sell

Explanation

Knowing the value/level of stock helps management understand the quantity of goods that will affect profitability and plan sales accordingly.

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