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Which of the following expenses relate to the profit and loss account of a manufacturing...

Accounts - Principles of Accounts
JAMB 2016

Which of the following expenses relate to the profit and loss account of a manufacturing firm?

  • A. Administrative overhead
  • B. Direct labour
  • C. Direct materials
  • D. Work-in-progress
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Correct Answer: Option A
Explanation

Administrative overhead is those costs not involved in the development or production of goods or services. This is essentially all overhead that is not included in manufacturing overhead. Examples of administrative overhead costs are the costs of: Front office and sales salaries, wages, and commissions. Office supplies.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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