Accounting Multiple Choice Question – 12 September 2023

The following information relates to the budgeted and actual sales of a product.

• sales volume in units: budgeted 25,000 AND actual 23,000
• contribution per unit: budgeted £3 AND actual £4
• fixed costs: budgeted £30,000 AND actual £30,000

Which change in the break-even point has been caused by the actual being different from the budgeted?

Select ONE answer:

1. 25% better
2. 25% worse
3. 75% better
4. 75% worse

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 – 30.000 /3 == > 30,000 / 4
2. Not correct
3. Not correct
4. Not correct

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