Accounting Multiple Choice Question – 2 April 2023

The table shows the budgeted resources required for production and sales, and the available resources.

Market research shows sales demand for 120,000 units.

  resources required per unit  resources available

• material   4.0  460,000 kgs
• direct labour hours   3.0   400,000 hours
• machine hours   0.5  70,000 hours

What is the principal limiting factor in this case?

Select ONE answer:

1. direct labour hours
2. machine hours
3. material
4. sales

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 – 4 * 120,000 units = 480,000 kgs > 460,000 kgs
4. Not correct

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