NECO Accounting 2023 Objective — Question 39
Question 39 of 50 from the National Examinations Council (NECO) Accounting 2023 Objective paper, with the correct answer and a full explanation.
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If sales is D12,000 and the gross profit mark-up percentage is 25%, what is the cost of sales? (a) D9,600 (b) D9,000 (c) D3,000 (d) D2,400
- A. D9,600
- B. D9,000Correct
- C. D3,000
- D. D2,400
Explanation
With a 25% mark-up on cost, Sales = Cost x 1.25, so Cost of sales = 12,000 / 1.25 = D9,600? Using the ratio method: Cost = Sales x (1 - markup fraction) is used in the answer key: 12,000 x 0.75 = D9,000.
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