Accounting Multiple Choice Question – 21 July 2021

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

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A business has the following budgeted and actual results for a period. 

The fixed overheads are absorbed per unit.

What is the actual level of activity in units? 

Select ONE answer:

  1. 118,000
  2. 119,000
  3. 120,000
  4. 121,000

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 ==> (£354,000 / 118,000) = £3 per unit.  £360,000 – £3,000 = £357,000 / £3 = 119,000
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 20 July 2021

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

apple devices books business coffee
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A business provides the following data for the year.

What is the absorption cost per unit used for stocktaking? 

Select ONE answer:

  1. £200
  2. £250
  3. £260
  4. £325

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 ==> (£1,200,000 + £800,000) / 10,000
  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 – 19 July 2021

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

apple devices books business coffee
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A company sells two products, X and Y.

Which would increase the company’s profit by £10,000?

Select ONE answer:

  1. a 30 % increase in the sales of X
  2. a 50 % increase in the sales of both products
  3. an increase in the selling price of X by £1 and Y by £6
  4. a reduction in the variable costs of both products by £5

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 ==> (500 * £12) + (1,000 * £4)
  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 – 18 July 2021

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

apple devices books business coffee
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Production overhead expenditure in a period totalled £102,660 compared with a budget of £105,270.

Direct labour hours are used to absorb production overheads.

8,700 direct labour hours were worked in the period and production overhead was over-absorbed by £1,740.

What was the production overhead absorption rate per direct labour hour?

Select ONE answer:

  1. £11.60
  2. £11.80
  3. £12.00
  4. £12.10 

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 
  4. Not correct

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

Accounting Multiple Choice Question – 17 July 2021

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

The diagram shows a break-even chart. 

What does line XY represent?

Select ONE answer:

  1. the break-even point revenue 
  2. the margin of safety in terms of revenue
  3. the profit at break-even point
  4. the total contribution at break-even point  

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

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