Accounting Multiple Choice Question – 22 February 2022

What are fixed costs if a business makes a profit for the year of £400,000 after turnover of £850,000 and total variable costs of £225,000?

Select ONE answer:

1. £225,000
2. £625,000
3. £425,000
4. £450,000

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 1

1. Correct ==> T/O – VC – Profit = £225K
2. Not correct
3. Not correct
4. Not correct

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