JAMB Accounting 2013 Objective — Question 25
Question 25 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2013 Objective paper, with the correct answer and a full explanation.
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When goods produced are transferred at cost plus mark-up before sale, the difference between the cost and the transferred price is a
- A. discount
- B. sales commission
- C. manufacturing profitCorrect
- D. factory reserves
Explanation
The mark-up added when goods are transferred from manufacturing to trading at more than cost is the manufacturing profit.
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