Tag: A-Level

Which statement about standard costing is NOT true?

Select ONE answer:

1. It can be used for budgeting.
2. It can be used for responsibility accounting.
3. It can be used to calculate marginal costs.
4. It can be used to calculate the average cost of stock.

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

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

A business operates a standard costing system.

At the end of the year the hourly rate paid to workers and the production per worker are less than budgeted.

A greater amount of lower priced materials than budgeted has been used.

What is the correct combination of variances?

Select ONE answer:

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

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

K Limited is planning an advertising campaign to promote its product.

The campaign will cost £14 000.

This is budgeted to increase sales volume in the second half of the year by 12 %.

Sales for the first half of the accounting year are budgeted at 30 000 units at a contribution of £4.20.

How much additional net profit should be budgeted as a result of the advertising campaign?

Select ONE answer:

1. Nil
2. £400
3. £560
4. £1,120

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 – (30,000 * 0.12 * £4.2) – £14,000

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

A company has forecast the following sales for the first three months of next year.

• month 1 units 2,000
• month 2 units 2,100
• month 3 units 2,400

At the start of month 1 there were 300 units in stock.

The company requires that the closing stock at the end of each month should be equal to 1/3 of the sales for the following month.

How many units must be produced in month 2?

Select ONE answer:

1. 2,000 units
2. 2,200 units
3. 2,400 units
4. 2,900 units

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 – 2,400 / 3 = 800 + 2,100 – (2,100 / 3) = 2,200
3. Not correct
4. Not correct

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