WAEC Past Questions and Answers - Page 42

206.

When the government gives up its ownership and control of a business to individuals, this is known as

A.

nationalization

B.

commercialization

C.

privatization

D.

indigenization

Correct answer is C

privatization; is the transfer of a business, industry, or service from public to private ownership and control.

207.

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

208.

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

210.

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