Accounting Multiple Choice Question – 4 January 2021

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

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What will result in under-absorption of fixed production overhead? 

Select ONE answer:

  1. absorption based on actual expenditure and actual activity
  2. actual expenditure below budget expenditure
  3. actual activity above budget activity
  4. actual activity below budget and expenditure as budgeted

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 4

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

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