Accounting Multiple Choice Question – 16 September 2023

Alex ltd is using flexible budgeting that shows the following information:

• output in units: 120,000 AND 80,000
• total fixed and variable costs: £660,000 AND £500,000

What are the variable costs per unit?

Select ONE answer:

1. £1.5
2. £2.25
3. £3
4. £4

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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