Accounting Multiple Choice Question – 30 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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The following material costs relate to the manufacture of 100 units of a product.

What is the raw material price variance?

Select ONE answer:

  1. £495 adverse
  2. £495 favourable
  3. £1,320 adverse
  4. £1,320 favourable

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 – £9,570 / 1,650kgs =£5.8 – £5.5 = £0.30 * 1,650 = 495A
  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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