Accounting Multiple Choice Question – 11 October 2017

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

Accounting

Information relating to two production processes F&G Are as follows:

Table 11

For each process, was there an abnormal loss or an abnormal gain? Select ONE answer:

Table 12

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

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

The answer is 3 – Process F’s normal loss is 8%, thus expected output is 92% of input. Input was 65,000 litres. Thus expected output would be 59,800 litres. Actual output was 58,900 litres.  As actual output was less than expected, there was an abnormal loss. For process G the normal loss is 5%, thus expected output is 95% of input. Input was 37,500 litres. Thus expected output would be 35,625 litres. Actual output was 35,700 litres. As actual output was more than expected, there was an abnormal gain.

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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