Business Studies Multiple Choice Question – 3 July 2022

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

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Stafford Jewels is an UK jewellery exporter specialising in Blue John jewels.

Its budgeted sales for one month were 200 units at £s 100.

Actual sales were 190 units at £s 110.

Paul the Chief Accountant calculated the sales variance to be ….?

Select ONE answer:

  1. £20 000 favourable
  2. £20 000 adverse
  3. £900 favourable
  4. £900 adverse

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. The budgeted figure was 200 units x £100 = £20 000. The actual sales were 190 units x £110 = £20 900 ==> £20 900 – £20 000 = £900 favourable
  4. Not correct

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