Day: April 7, 2023

Accounting Multiple Choice Question – 7 April 2023

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

Photo by Olya Kobruseva on Pexels.com

The following budgeted information is available for Alex Ltd.

  • selling price per unit £200
  • total costs per unit £150
  • budgeted sales for the period 2,500 units

Variable costs are 60% of total costs.

What are the budgeted fixed overheads for the period?

Select ONE answer:

  1. £125,000
  2. £150,000
  3. £225,000
  4. £375,000

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 2

  1. Not correct
  2. Correct – £150 * .4 = £60 * 2,500 units = £150,000
  3. Not correct
  4. Not correct

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