Accounting Multiple Choice Question – 21 February 2021

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

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A company has a policy of holding stock equal to next month’s expected sales plus 10%.

The information below shows the budgeted sales for the next three months.

  • Aug   —  300 units
  • Sept  —  270 units
  • Oct   —  360 units

What must be the company’s production in September, in order to achieve its objectives?

Select ONE answer:

  1. 267
  2. 333
  3. 369
  4. 396

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 3

  1. Not correct
  2. Not correct
  3. Correct = – (270 *0.1) + 360 + (360 * 0.1)
  4. Not correct

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