Month: October 2022

The shaded area in the diagram represents the standard material cost for a 2000 unit manufacturing run of Product X.

The larger box represents the total material cost.

Which statement is true?

Select ONE answer:

1. material price variance – Adverse & material usage variance – Adverse
2. material price variance – Adverse & material usage variance – Favourable
3. material price variance – Favourable & material usage variance – Adverse
4. material price variance – Favourable & material usage variance – 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 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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Which statement best describes the objectives of standard costing?

Select ONE answer:

1. It assists in budget preparation.
2. It improves control on a ‘management by exception’ basis.
3. It provides a prediction of future costs.
4. All of the above.

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

A cash budget is prepared for a new business.

The information available is as follows:

• capital introduced – £60,000
• goods sold in first month – £12,000
• loan from the bank – £20,000

25% of sales constitute cash sales, with the balance payable over the following two months.

What are the total cash receipts in month one?

Select ONE answer:

1. £60,000
2. £72,000
3. £80,000
4. £83,000

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct = = > £60k + £30k + £12k/4

This work is licensed under a Creative Commons Attribution 4.0 International License.