i have got two issues. 1) as i was doing some past exam papers,i realised that the solutions in the exam reports differ from what the notes show.it is about the heading which depreciation on premises,vehicles etc fall under.in the notes,it is under cost of goods sold,and in the past papers,it is under admin expenses.so for consistency,which heading should we put depreciation under? 2) it is my first time to write CT2 exam. on multiple choice questions,do we have to show working in the answer booklet or on rough papers and provide just the answer on the answer sheet.do you loose marks if you do not show adequate workings as is the case with non-multiple choice questions?
In part 1, if you think something as an overhead, it would go in the admin costs section, but if it's part of the production process, it would go in the 1st section for cost of sales. There are also inconsistencies with wages and salaries sometimes, when it's not obvious if it's production staff or other staff....so just state why you have put something in one section and not the other if it's not obvious which it belongs to.
