Tag: AQA

The following information relates to a product:

1. fixed costs – £72,000
2. desired profit – £30,000
3. selling price per unit – £10
4. variable cost per unit – £4

How many units must be produced and sold to cover fixed costs and make the desired profit?

Select ONE answer:

1. 12,000 units
2. 17,000 units
3. 18,000 units
4. 25,500 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 ==> £72K + £30k = £102k / (£10 – £4) ==> 17,000 units
3. Not correct
4. Not correct

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

What is the result when you have an under-absorption of fixed overhead?

Select ONE answer:

1. absorption based on actual expenditure and actual activity
2. activity above budget
3. activity below budget
4. expenditure below budget

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

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

The following information applies to X Ltd.

output (units) sales £000 profits £000

750 750 100
1000 1000 250

What is the contribution to sales ratio?

Select ONE answer:

1. 25%
2. 40%
3. 60%
4. 87%

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

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

The diagram shows a break-even chart.

Which line represents the margin of safety?

Select ONE answer:

1. WX
2. WY
3. XY
4. XZ

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

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

The following information relates to a product:

• fixed costs – £72,000
• desired profit – £30,000
• selling price per unit – £10
• variable cost per unit – £4

How many units must be produced and sold to cover fixed costs and make the desired profit?

Select ONE answer:

1. 12,000 units
2. 17,000 units
3. 18,000 units
4. 25,500 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 ==> £72K + £30k = £102k / (£10 – £4) ==> 17,000 units
3. Not correct
4. Not correct

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