Accounting questions and answers

Accounting Questions and Answers

If you are preparing for an accounting aptitude test or even a job interview, these accounting questions and answers will help you master the principles of accounting. This test covers accounting past questions from WAEC, JAMB, Post UTME exams and many more.

921.

When goods are sent to the branch at cost plus mark-up, it means that the branch should sell at 

A.

A price above or below the stipulated price

B.

Any price but not below the transfer price

C.

Cost price

D.

A price that is equal to the mark-up

Correct answer is B

Cost-plus pricing is a pricing strategy in which the selling price is determined by adding a specific amount markup to a product's unit cost.

Cost plus pricing involves adding a markup to the cost of goods and services to arrive at a selling price. Under this approach, you add together the direct materialcost, direct labor cost, and overhead costs for a product, and add to it a markup percentage in order to derive the price of the product.