Accounting Multiple Choice Question – 2 January 2021

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

Accounting
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A business uses job costing to calculate the cost of vehicle repair jobs. 

Overheads are allocated on an absorption costing basis.

What is the effect of this method of allocation?

Select ONE answer:

  1. overheads will include both fixed and variable overhead costs
  2. overheads will include direct costs only
  3. overheads will include fixed overhead costs only
  4. overheads will include variable overhead costs 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

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Author: stuart001uk2014

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

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