Month: October 2023

Accounting Multiple Choice Question – 21 October 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 Manufacturing Ltd manufactures one product.

Variable costs are £600k. Fixed costs are £300k.

If Alex Manufacturing Ltd bought the product from another supplier, it could use existing machinery to make a total contribution of £400k. Fixed costs would not change.

What is the maximum price it should pay to obtain the product from another supplier?

Select ONE answer:

  1. £600k
  2. £700k
  3. £900k
  4. £1,000k

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 – £600k + £400k

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Accounting Multiple Choice Question – 20 October 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 following financial data applies to Alex Trading Ltd.

  • budgeted labour hours – 10,000 hours
  • actual labour hours – 9,500 hours
  • budgeted overheads – £150,000
  • actual overheads – £160,000

What is the amount of overhead under-absorbed?

Select ONE answer:

  1. £7,500
  2. £8,000
  3. £10,000
  4. £17,500

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 – £150,000 / 10,000 = £15 * 500 = £7,500 + £10,000 extra overhead

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

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.

Photo by Pixabay on Pexels.com

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

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

Accounting Multiple Choice Question – 18 October 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 is a benefit of using absorption costing?

Select ONE answer:

  1. It allows a business to calculate the break-even point for production.
  2. It allows a business to calculate the total cost of goods produced.
  3. It allows a business to calculate the profit to be made on a product.
  4. It allows decision-making on utilising spare capacity by increasing production.

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

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

Accounting Multiple Choice Question – 17 October 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 graph shows a break-even chart.

What are the fixed costs?

Select ONE answer:

  1. £0
  2. £10k
  3. £20k
  4. £30k

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

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