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WAEC Accounting 2023 Objective — Question 2

Question 2 of 50 from the West African Examinations Council (WAEC) 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.Correct
  • C. an overhead cost.
  • D. an administration cost.

Explanation

The crane contributes directly to the construction (manufacturing) of the project, so its hire cost is a direct manufacturing cost.

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