Accounting Multiple Choice Question – 18 April 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 table shows the fixed budget for a business as follows.

sales and production units  —  20,000

sales value  —  £400,000
variable costs  —  £280,000
fixed costs  —  £50,000

Actual production and sales were 14,000 units.

Using a fixed budget, what would profit be?

Select ONE answer:

  1. £28,000
  2. £34,000
  3. £49,000
  4. £84,000

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 2

  1. Not correct
  2. Correct ==>  £400,000 / 20,000 – £280,000 / 20,000 = CM £6 * 14,000 units – £50,000 ==> £34,000
  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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