Day: October 19, 2023

Accounting Multiple Choice Question – 19 October 2023

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

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Alex Trading Ltd provides the following data for the year:

  • budgeted output (units) – 10,000 units
  • actual output (units) – 8,000 units
  • budgeted fixed production costs – £1,200,000
  • budgeted variable production costs – £800,000
  • budgeted fixed selling overhead – £600,000

What is the absorption cost per unit used for stocktaking?

Select ONE answer:

  1. £200
  2. £250
  3. £260
  4. £325

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 == > £1,200k + £800k / 10,000 units
  2. Not correct
  3. Not correct
  4. Not correct

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