WAEC Accounting 2021 Objective — Question 5
Question 5 of 50 from the West African Examinations Council (WAEC) Accounting 2021 Objective paper, with the correct answer and a full explanation.
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The difference between the market value of goods produced and the cost of production is
- A. net profit on goods sold
- B. gross profit on manufacturingCorrect
- C. closing stock of work-in-progress
- D. prime cost of manufacturing
Explanation
When the market value of goods is valued above the cost of production, the difference is the gross profit on manufacturing.
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