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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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