Back to Questions
SSC Financial and Cost Accounting P-1 QUESTION #9645
Question 1
In a Departmental Income Statement, which of the following expenses is classified as 'un-allocable' across departments?
  • Salaries and wages
  • Building rent
  • Interest on bank overdraft✔️
  • Carriage inward
Correct Answer Explanation
Un-allocable expenses are those providing economic benefits to the whole entity and cannot be identified with a specific department. These are financial expenses such as interest on loans and bank overdrafts, loss on disposal of investments, etc. They are shown in the General Profit and Loss account.