WAEC Commerce Past Questions & Answers - Page 43

211.

Which of the following mode of transport involves the use of tramps?

A.

Land transport

B.

Sea transport

C.

Air transport

D.

Pipeline

Correct answer is B

A boat or ship engaged in the tramp trade is one which does not have a fixed schedule

212.

Ojo bought a bicycle for #20,000, and repaired it at a cost of #5,000. He then sold the bicycle for #30,000.

What is the cost of goods sold

A.

#30,000

B.

#25,000

C.

#20,000

D.

#15,000

Correct answer is B

COGS = Beginning Inventory + Purchases During the Period – Ending Inventory.

Examples of what can be listed as COGS include the cost of materials, labor, the wholesale price of goods that are resold, such as in grocery stores, overhead, and storage.

20,000 + 5,000 = 25000

214.

Ojo bought a bicycle for #20,000, and repaired it at a cost of #5,000. He then sold the bicycle for #30,000

What was his net profit?

A.

#35,000

B.

#25,000

C.

#15,000

D.

#5,000

Correct answer is D

Net profit is the profit after expenses must have deducted

cost price 20000
expenses 5000
20000 + 5000 = 25000

sales price 30,000 - 25000 = 5000

215.

Which of the following ancillary services makes it possible for goods to be where they are required?

A.

Communication

B.

Banking

C.

Transportation

D.

Insurance

Correct answer is C

Transportation is among the more vital economic activities for a business. By moving goods from locations where they are sourced to locations where they are demanded, transportation provides the essential service of linking a company to its suppliers and customers.