Month: November 2023

Accounting Multiple Choice Question – 10 November 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 sales of a product sold by Alex Trading Ltd are given.

  • sales in units: budget 2,000 and actual 1,800
  • selling price per unit: budget £15 and actual £?
  • sales revenue: budget £30,000 and actual £28,800

What is the sales price variance?

Select ONE answer:

  1. £1,200 adverse
  2. £1,200 favourable
  3. £1,800 adverse
  4. £1,800 favourable

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 – Actual price – Standard price * Actual quantity == > £28,800 / 1,800 = £16 == > £15 – £16 * 1,800 = £1,800 FAV

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Accounting Multiple Choice Question – 9 November 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 standard material cost of producing 1,500 units of a product A are shown below

  • material X – 9,000kg at £4 per kg = £36,000
  • material Y – 18,000 kg at £3 per kg = £54,000

The actual material cost to produce 1,500 units of product A was as follows.

  • material X – 8,500kg used which cost £34,425
  • material Y – 18,200kg used which cost £53,690

What is the total material usage variance?

Select ONE answer:

  1. £1,400 favourable
  2. £1,435 favourable
  3. £2,600 favourable
  4. £2,615 favourable

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 – Standard price * (standard quantity – actual quantity) == > £4 * 500 FAV + £3 * 200 ADV = £1,400 FAV
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 8 November 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 budgeted information is supplied by Alex Trading Ltd.

  • selling price per unit £150
  • total costs per unit £120
  • budgeted sales 6,000 units

Variable costs are 40% of total costs.

What are the total budgeted fixed overheads for the period?

Select ONE answer:

  1. £288,000
  2. £360,000
  3. £432,000
  4. £540,000

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 – £120 * 0.6 * 6,000
  4. Not correct

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

Accounting Multiple Choice Question – 7 November 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 information below shows the annual budget for Alex Trading Ltd for production of 12,000 units of product A:

  • direct materials £30,000 
  • direct labour £25,000 
  • variable overheads £17,000 
  • fixed costs £60,000
  • total cost £132,000 

The actual production of product A is 15,000 units and Alex Trading Ltd decides to flex its budget. 

What is the revised total budgeted cost for product A?

Select ONE answer:

  1. £145,750
  2. £150,000
  3. £156,000
  4. £165,000

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 2

  1. Not correct
  2. Correct – £132k – £60k) * 15 / 12 = £90k + £60k
  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 – 6 November 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

A cash budget indicates that a company will exceed its overdraft limit.

Which item should the company consider delaying?

Select ONE answer:

  1. capital expenditure
  2. extending the credit period allowed to debtors
  3. loan interest
  4. wages of employees

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
  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.