The Multiple Choice Questions Blog

Lucy, prefers a Theory Y style of management in order to reduce labour turnover. 

A Theory Y style manager, such as Lucy, assumes that employees?

Select ONE answer:

1. need close supervision
2. tend to dislike work
3. can be trusted in their job
4. are only motivated by money

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 – Theory Y managers assume that employees like to lead rather than needing to be told what to do by a manager.
2. Not correct – disliking work is a perception by Theory X managers and not Theory Y managers.
3. Correct – Definition of Theory Y style of management e.g. a participative style of management.  If Lucy’s employees feel trusted by her, motivation will increase.This may result in higher staff retention as employees feel valued and are less likely to leave.
4. Not correct – Theory Y managers believe that employees are motivated by job satisfaction and not just by the money

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

Alex Ltd compared its budgeted sales figures with its actual sales figures and discovered an adverse variance. 

Alex Ltd should?

Select ONE answer:

1. reduce its advertising budget
2. reduce its inventory levels
3. increase its prices
4. increase its 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 – this may result in a reduction in sales due to lack of awareness in the market which would increase the adverse variance
2. Correct – Definition of adverse variance e.g. actual figures are worse than the budgeted figures.  Alex Ltd has unsold inventory.  Therefore Alex Ltd does not need to make additional products, so needs less inventory.
3. Not correct – this may result in demand falling as the prices are higher resulting in a loss of sales for Alex Ltd adding to the adverse inventory.
4. Not correct – this will just result in Alex Ltd having excess inventory rather than reducing the adverse variance

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

In July 2021, The Big Car Company recalled a million vehicles due to a fault that could cause doors to open unexpectedly. 

Which element of the design mix does this relate to?

Select ONE answer:

1. Kaizen
2. Aesthetics
3. Function
4. Efficiency

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 – continuous improvement should have avoided the fault being caused in the first place or is not part of the design mix.
2. Not correct – aesthetics is how a product looks rather than how it works.
3. Correct – Definition of design mix e.g. the way in which function, aesthetics and economic manufacture are combined in the overall design.  A car with faulty doors is not working properly/safe.  Therefore it does not fulfil its design function and is not fit for purpose.
4. Not correct – efficiency is not part of the design mix.

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