Day: July 7, 2024

Accounting Multiple Choice Question – 7 July 2024

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

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Alex plc has a capital-intensive operation, with specialisation of work and well-established systems for getting the work done.

Each month its operations manager, Arthur, is required to produce more items than in previous periods.

Using the four Vs model, Alex plc’s operations manager, Arthur, is therefore expected to manage?

Select ONE answer:

  1. High volume and high unit costs
  2. High volume and low unit costs
  3. Low volume and low unit costs
  4. Low volume and high unit costs

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. Notcorrect
  2. Correct  –>  High volume lends itself to Alex pic’s capital-intensive operation, with specialisation of work and well-established systems for getting the work done. Unit costs should therefore be low for Alex plc.
  3. Not correct
  4. Not correct

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