Month: June 2023

Accounting Multiple Choice Question – 30 June 2023

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

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The table shows figures for a week’s production of The Milford.

  • expected production – 10,000 units
  • expected production overhead – £50,000
  • actual production overhead – £60,000
  • under-absorption of overhead – £5,000

What is the actual amount of production in the week of The Milford?

Select ONE answer:

  1. 9,000 units
  2. 9,167 units
  3. 11,000 units
  4. 13,000 units

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 – £50,000 / 10,000 = £5 per unit = = > Actual production overhead £60,000 means a difference of £10,000 but and under-absorption of £5,000. Therefore £5,000 difference / £5 = 1,000 extra units of actual production.
  4. Not correct

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Accounting Multiple Choice Question – 29 June 2023

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

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Alex plc manufactures a product called The Milford.

Information for the last two years on The Milford is as follows:

Year 1

  • variable unit costs £6.00
  • fixed overheads per annum £24,000
  • unit sales price £10

Year 2

  • variable unit costs £7.00
  • fixed overheads per annum £25,200
  • unit sales price £10

In both years, production of the Milford has been at break-even level.

What is the increase in production in year 2 compared with year 1 of the Milford?

Select ONE answer:

  1. £0.50
  2. £0.83
  3. £1.00
  4. £1.50

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 – Y1 £24k / (£10 – £6) – – > Y2 £25.2k / £10 – £7 = 2,400 extra units
  2. Not correct
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 28 June 2023

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

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The total cost of making product X is shown on the graph.

What is the variable cost per unit?

Select ONE answer:

  1. £0.50
  2. £0.83
  3. £1.00
  4. £1.50

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 – £1,500 – £1,000 FC = £500 / 1,000 units = £0.50 per unit
  2. Not correct
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 27 June 2023

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

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Alex plc provides the following information:

  • total fixed costs – £10,000
  • unit selling price – £1
  • variable unit production costs – £0.75

What is the total sales revenue in £ needed to break even?

Select ONE answer:

  1. 2,500
  2. 7,500
  3. 10,000
  4. 40,000

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 – £10k / £0.25 = 40,000 units

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Accounting Multiple Choice Question – 26 June 2023

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

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What does the line XY show?

Select ONE answer:

  1. Fixed costs per unit become less as production increases.
  2. Total fixed costs become less as production increases.
  3. Total variable costs become less as production increases.
  4. Variable costs per unit become less as production increases.

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

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