Economics Multiple Choice Question – 26 May 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The steel required for the construction of a new car-assembly plant in a fully employed economy, is obtained by increasing the output of the domestic steel industry.

What is the opportunity cost of producing the steel?

Select ONE answer:

  1. the alternative benefits forgone by diverting additional resources to steel manufacture
  2. the alternative benefits forgone by increasing the capacity of the car industry
  3. the alternative benefits that would have been obtained by putting the steel to other uses
  4. zero, since there is no reduction in the steel supplied to other steel users

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 25 May 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A business changed from using absorption costing to marginal costing.

This had no effect on profit for the month.

What had happened in the month?

Select ONE answer:

  1. Production was stopped during the period.
  2. Units produced and sold were equal.
  3. Units produced were greater than units sold.
  4. Units produced were less than units sold.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct
  3. Not correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 24 May 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Why might a business prepare budgets?

1 to improve coordination between departments
2 to encourage planning and decision-making
3 to monitor and control costs

Select ONE answer:

  1. 1, 2 and 3
  2. 1 and 2 only
  3. 1 and 3 only
  4. 2 and 3 only

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 23 May 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
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A company’s budget shows figures for costs and sales for the month ended 31 March 2022.

  • selling price per unit – £35
  • variable costs per unit – £20
  • fixed costs – £10,000
  • volume sold – 2,000 units

In March the actual sales volume was 10% lower than budgeted.

By how much was actual profit lower than budgeted profit?

Select ONE answer:

  1. £2,000
  2. £3,000
  3. £5,700
  4. £7,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct – CM = £35 – £20 = £15 * 2,000 units – £10,000 FC = £20,000 Profit ==> £15 * 1,800 units – £10,000 FC = £17,000 profit —-> £3,000 lower actual profit
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 22 May 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
Photo by Serpstat on Pexels.com

A company has fixed costs of £30,000.

It sells 10,000 units of a single product for £20 per unit and has a contribution to sales ratio of 75%.

What is the increase in profit if total sales are 15,000 units?

Select ONE answer:

  1. £45,000
  2. £75,000
  3. £195,000
  4. £225,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct – £20 * 0.75 = £15 * 5,000 units ==> £75,000
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

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