Accounting Multiple Choice Question – 17 July 2023

Alex plc budgets to produce 110,000 units.

Market research shows that the demand for the product will be for 90,000 units.

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

• resources required per unit – material 3 kilos + direct labour hours 2.5 + machine hours 0.5
• resources available – 335,000 kilos + 300,000 labour hours + 110,000 machine hours

What is the principal limiting factor in this case?

Select ONE answer:

1. direct labour
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 4

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

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