Month: September 2023

Accounting Multiple Choice Question – 20 September 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

What would NOT be included in a net present value (NPV) capital investment appraisal?

Select ONE answer:

  1. any expenditure incurred after the payback period
  2. depreciation of capital expenditure
  3. increase in working capital
  4. residual value of the capital cost

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
  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 – 19 September 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 data relates to production of a product for a month:

  • quantity produced (units) – 610
  • actual kilos of material used – 4,350 kgs
  • standard kilos of material – 4,270 kgs
  • standard cost per kilo – £9
  • material price variance – £435 Favourable

What was the actual cost of material used?

Select ONE answer:

  1. £38,430
  2. £38,715
  3. £39,150
  4. £39,585

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 – £4,350 * £9 – £435
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 18 September 2023

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

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Budgeted and actual results are as follows:

  • materials (kgs per unit) budgeted 24 AND actual 26
  • materials (price per kg) budgeted £12 AND actual £16
  • labour (hours per unit) budgeted 8 AND actual 6
  • labour (rate per hour) budgeted £25 AND actual £22

What is the total variance per unit manufactured?

Select ONE answer:

  1. £60 adverse
  2. £72 adverse
  3. £86 adverse
  4. £120 adverse

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 – (24 * £12 + 8 * £25) – (26 * £16 + 6 * £22)
  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.

Accounting Multiple Choice Question – 17 September 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

The table shows information for the last three months’ production for Alex Ltd

  • total of manufacturing hours: Budgeted 240,000 hours AND Actual 270,000 hours
  • hours to make one unit: Budgeted 3.0 hours AND Actual 2.7 hours

The budgeted manufacturing costs for the three month period are £720,000.

What is the budgeted cost 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

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

Accounting Multiple Choice Question – 16 September 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

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

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