JAMB Accounting 2016 Objective — Question 2
Question 2 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2016 Objective paper, with the correct answer and a full explanation.
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2. When goods are sent to the branch at cost plus mark-up, it means that the branch should sell at (a) a price that is equal to the mark-up (b) any price but not below the transfer price (c) a price above or below the stipulated price (d) No option regulations
- A. a price that is equal to the mark-up
- B. any price but not below the transfer priceCorrect
- C. a price above or below the stipulated price
- D. No option regulations
Explanation
When goods are sent to branch at cost plus mark-up, the goods must not be sold below the mark-up price.
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