JAMB Accounting Past Questions & Answers - Page 60

296.

Branch stock adjustment account is prepared at?

A.

Cost price

B.

New price

C.

Invoice price

D.

Normal price

Correct answer is C

Branch stock adjustment account deals with the loading on the respective items of goods relating to Branch stock account.

  Branch adjustment account is prepared at invoice price.

  The difference between the two sides of this account reveals either gross profit (if credit side is greater than the debit side) or gross loss (if debit side is greater than the credit side).

298.
299.

In departmental accounting, which is not a transfer pricing_________

A.

Cost based transfer price

B.

Market based transfer pricing

C.

Dual pricing system

D.

Peak pricing

Correct answer is D

No explanation has been provided for this answer.

300.

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

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 A

Cost plus mark up is a pricing strategy in which the selling price is determined by adding a specific amount mark up to a product unit cost