Back to Questions
SSC Financial and Cost Accounting P-1 QUESTION #9657
Question 1
In Departmental Accounts, the Hairdressing department has sales of Rs. 9,000 out of total sales of Rs. 54,000. If Repair Expenses of Rs. 4,800 are to be allocated in the ratio of sales, how much is charged to Hairdressing?
  • Rs. 800✔️
  • Rs. 1,600
  • Rs. 2,400
  • Rs. 533
Correct Answer Explanation
Hairdressing ratio = 9,000/54,000 = 1/6. Repair expenses = 4,800 × 1/6 = Rs. 800. Sales-based allocation is used for selling and distribution-type expenses where the department's revenue generation drives the expense incurrence.