The Multiple Choice Questions Blog

The Arcade coffee bar in Stone in the centre of this town.  Its budgeted sales for June were 1,500 coffees sold at a price of £1.40 each.  Actual sales in June were 1,350 units at £1.50 each.

The manager calculated the sales variance to be?

Select ONE answer:

1. £2,100 adverse
2. £2,100 favourable
3. £75 adverse
4. £75 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 3

1. Not correct
2. Not correct
3. Correct – Definition of sales variance e.g. the difference between a budgeted figure and the actual figure.  Actual sales: 1350 x £1.5 = £2,025.  Budgeted sales: 1500 x £14 = £2,100.  £2,025 – 2,100 (1) = £75 adverse 
4. Not correct

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In October 2014, Apple announced that it was no longer going to manufacture and sell its sixth-generation iPod Classic MP3 player. 

The most likely reason for this decision is?

Select ONE answer:

1. environmental considerationsthe iPod Classic was not a well-known product
2. very high profit margins from the iPod Classic
3. less competition from other MP3 players in the market
4. the end of the iPod Classic’s product life cycle

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 – Definition of product life cycle e.g. the different stages a product passes through from introduction to withdrawal or eventual demise.  The iPod Classic has already been extended 6 times and had declining revenue & sales.  The IPod cannot be extended again in a profitable way so is no longer being manufactured.

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A UK Retailer had suppliers in the Rana Plaza building, Bangladesh, that collapsed in 2013. Employees of these suppliers were then paid by the UK Retailer until 2015. 

This demonstrates what of the UK Retailer?

Select ONE answer:

1. environmental considerations
2. fair trade agreement
3. health and safety regulations
4. ethical considerations

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 – Definition of ethical considerations: these are about doing the right thing and what is morally correct. The UK Retailer’s clothes suppliers and their employees would not be able to earn any income while they dealt with the impact of the tragedy.  They are under no obligation to support its suppliers and therefore this demonstrated their ethical behaviour.

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Retailer Alex International offers free tasting of food and drink products to its customers every day.

The MOST LIKELY reason for offering free samples to customers is?

Select ONE answer:

1. to identify potential bias
2. to encourage a purchase
3. to measure market size
4. to increase product safety

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 – Definition of free samples: small amounts of a product given to consumers without charge.  Alex offers free samples every day as an incentive to its customers to taste products they may not have tried before. Customers may like the sample products offered, leading to regular purchases, product loyalty and increased sales.
3. Not correct
4. Not correct

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

The MOST LIKELY explanation for this was the?

Select ONE answer:

1. increasing strength of the Japanese currency
2. increasing unemployment level in Japan
3. increasing rate of inflation in Japan
4. increasing Japanese interest rates

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 ==> Definition of a strengthening currency; its value is increasing and will buy more of other currencies OR definition of an exchange rate; The price of one currency expressed in terms of another currency.  Japanese buyers now get more sterling for their yen as the yen has appreciated against the sterling.  This makes Lucy Michelle products cheaper for buyers in Japan so demand has increased.
2. Not correct
3. Not correct
4. Not correct

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