Tag: Accounting

Accounting Multiple Choice Question – 27 October 2022

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

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Materials and labour are in plentiful supply and the following budgets are prepared.

  1. cash
  2. purchases
  3. sales
  4. overhead

In which order should the budgets be prepared?

Select ONE answer:

  1. 1, 2, 3 and 4
  2. 2, 4, 1 and 3
  3. 3, 2, 4 and 1
  4. 4, 3, 2 and 1

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

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Accounting Multiple Choice Question – 26 October 2022

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

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A company makes three products for which details per unit are given.

  • selling price – product X £18 / product Y £35 / product Z £50
  • direct materials – product X £4 / product Y £5 / product Z £5
  • direct labour hours – product X 0.5 hours / product Y 2 hours / product Z 2.5 hours

The direct labour rate is £8.00 per hour.

Direct labour hours are limited.

In which order should the products be ranked to achieve the maximum profit with the available labour hours?

Select ONE answer:

  1. first X & next Y & last Z
  2. first Y & next Z & last X
  3. first Z & next X & last Y
  4. first X & next Z & last Y

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 = = > X = 18 – 4 – (0.5 * 8) = £10; Y = 35 – 5 – (2 * 8) = £14; Z = 50 – 5 – (2.5 * 8) = £25 = = > X £10 / 0.5 hours = £20; Y £14 / 2 hours = £7; Z £25 / 2.5 hours = £10 = = > Therefore X then Z then Y

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Accounting Multiple Choice Question – 25 October 2022

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

At the beginning of a given period the value of work-in-progress was £11,000.

The unit costs of production for the period were:

  • direct materials – £5.00
  • direct labour – £8.50

At the end of the period work-in-progress consisted of 700 units which were complete as to 80% of materials and 50% labour.

What was the change in the value of the work-in-progress during the period?

Select ONE answer:

  1. Decrease – £1,550
  2. Increase – £1,550
  3. Decrease – £5,225
  4. Increase – £5,225

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 = = > £11,000 – (£5 * 0.8 * 700) – (£8.5 * 0.5 * 700)
  4. Not correct

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

Accounting Multiple Choice Question – 24 October 2022

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

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A company is evaluating its plans to close a unit within its business. If closed, the employees at the unit would be redeployed elsewhere in the business.

The costs associated with the closure are as follows:

  • net book value of unit assets (no resale value) – £35k
  • estimated direct cost of closure of the unit – £25k
  • existing fixed overheads apportioned to unit – £16k
  • wages of unit employees – £20k

What is the relevant cost of closure of the unit?

Select ONE answer:

  1. £25k
  2. £41k
  3. £61k
  4. £96k

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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Accounting Multiple Choice Question – 23 October 2022

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

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What could cause an over-absorption of overhead expenditure?

  1. Units produced exceeding the budgeted production
  2. Units produced being less than the budgeted production
  3. Overhead expenditure being less than budget
  4. Overhead expenditure exceeding budget

Select ONE answer:

  1. 1 and 2
  2. 1 and 3
  3. 2 and 4
  4. 3 and 4

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.