Business Studies Multiple Choice Question – 7 July 2021

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

Business Studies
Photo by Andrea Piacquadio on Pexels.com

The Arcade coffee bar in Stone in the centre of this town.  Its budgeted sales for June were 1,500 coffees sold at a price of £1.40 each.  Actual sales in June were 1,350 units at £1.50 each.

The manager calculated the sales variance to be?

Select ONE answer:

  1. £2,100 adverse
  2. £2,100 favourable
  3. £75 adverse
  4. £75 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 3

  1. Not correct
  2. Not correct
  3. Correct – Definition of sales variance e.g. the difference between a budgeted figure and the actual figure.  Actual sales: 1350 x £1.5 = £2,025.  Budgeted sales: 1500 x £14 = £2,100.  £2,025 – 2,100 (1) = £75 adverse 
  4. Not correct

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Author: stuart001uk2014

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

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