NECO Accounting 2023 Objective — Question 2
Question 2 of 50 from the National Examinations Council (NECO) Accounting 2023 Objective paper, with the correct answer and a full explanation.
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A crane hired by a building construction company would be classified as (a) a financial cost (b) a direct manufacturing cost (c) an overhead cost (d) an administration cost
- A. a financial cost
- B. a direct manufacturing cost
- C. an overhead costCorrect
- D. an administration cost
Explanation
The crane supports construction but is not directly used to produce the building, so its cost is an overhead cost.
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