Tag: ACA

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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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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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.

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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

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

Accounting Multiple Choice Question – 5 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 table contains information provided by a company.

  • budgeted direct labour hours – 8,000
  • actual direct labour hours worked – 7,500
  • budgeted overhead expenditure – £104,000
  • actual overhead expenditure – £112,500

What is the amount of the overhead over / under recovery?

Select ONE answer:

  1. £7,500 under-recovered
  2. £8,500 over-recovered
  3. £8,500 under-recovered
  4. £15,000 under-recovered

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 – £112,500 – £104,00 + ((£104,000 / 8,000) * (8,000 – 7,500))

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