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  5. The head office usua...

The head office usually issues goods to branches at

Accounts - Principles of Accounts
JAMB 2025

The head office usually issues goods to branches at

  • A. cost price
  • B. prime cost
  • C. net realisable value
  • D. production cost
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Correct Answer: Option A
Explanation

The head office issues goods to branches at cost price because it reflects the actual production cost without any profit. This gives the most accurate value of goods transferred to the branch.

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