(3a) A manufacturing account is an account in the general ledg | EXAM PLATFORM ‼️🇬🇭

(3a)
A manufacturing account is an account in the general ledger which is used to accumulate all the manufacturing costs of goods completed by a business during an accounting period. For a manufacturing business the manufacturing account needs to be prepared before completing the trading and profit and loss accounts.

(3b)
(i) It helps to determine manufacturing costs of finished goods.
(ii) It helps in improving the cost-effectiveness of manufacturing activities.
(iii) To ascertain the amount of any profit or loss on the manufacturing process

(3c)
(i) Accounting ratios do not resolve any financial problems of the company. They are a means to the end, not the actual solution.
(ii) Accounting ratios completely ignore the qualitative aspects of the firm. They only take into consideration the monetary aspects (quantitative)
(iii) Accounting ratios are based on accounting figures given in the financial statements.

@wassce_bece_updates