JAMB Accounting 2015 Objective — Question 27

Question 27 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.

The objective of allocating all costs to products is to

A. produce a scientifically accurate cost
B. avoid unallocated overhead and compute total product cost
C. co-ordinate the cost and financial accounts
D. compute the contribution of the product to the final profitCorrect

Explanation

By allocating all costs to products, management can determine the contribution each product makes to the overall profit of the business.

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