Month: September 2023

Accounting Multiple Choice Question – 15 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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The table shows an annual budget for Alex Ltd:

  • units produced – 20,000
  • direct material – £80,000
  • direct labour – £120,000
  • variable overheads (at 100 % of prime cost) – £200,000
  • fixed costs – £280,000
  • Total costs – £680,000

As the actual production is only 16,000 units, Alex Ltd produces a flexible budget.

What is the revised total budgeted cost?

Select ONE answer:

  1. £320,000
  2. £560,000
  3. £600,000
  4. £640,000

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 3

  1. Not correct
  2. Not correct
  3. Correct – (£80k / 20,000 * 16,000) + (£120k / 20,000 * 16,000) = £160,k * 2 (100% of prime costs) + £280k FC
  4. Not correct

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Accounting Multiple Choice Question – 14 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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The table shows budgets for the next production period for Alex Ltd:

  • direct materials: output 2,000 units = £30,000 AND output 4,000 units = £60,000
  • direct labour: output 2,000 units = £48,000 AND output 4,000 units = £96,000
  • production overhead: output 2,000 units = £76,000 AND output 4,000 units = £92,000

What would be the budgeted production cost of 3,000 units?

Select ONE answer:

  1. £141,000
  2. £147,000
  3. £171,000
  4. £201,000

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 = DM £45,000 + DL £72,000 + PO (76+92 / 2)

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

Accounting Multiple Choice Question – 13 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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The table contains information provided by Alex Ltd.

  • actual direct labour hours worked – 7,500 hours
  • budgeted direct labour hours – 8,000 hours
  • budgeted overhead expenditure – £104,000
  • overheads under-recovered – £15,000

What is the amount of the actual overhead expenditure?

Select ONE answer:

  1. £89,000
  2. £97,500
  3. £112,500
  4. £119,000

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 3

  1. Not correct
  2. Not correct
  3. Correct – £104,000 / 8,000 hours = £13 * 7,500 hours = £97,500 + £15,000
  4. Not correct

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

Accounting Multiple Choice Question – 12 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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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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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 11 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

For what purpose might management undertake sensitivity analysis?

Select ONE answer:

  1. to calculate employees ́ bonuses
  2. to determine levels of depreciation
  3. to determine the effect of dividends on profit
  4. to determine the selling price of a product

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.