Tag: Budgeting

Accounting Multiple Choice Question – 18 December 2023

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

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Which of these statements best describes what a budget (in the context of a business) is?

Select ONE answer:

  1. A plan for the future that is based on the objectives that the business has set
  2. A statement of the cash inflows and outflows from a business
  3. A technique by which short-term decisions can be made
  4. It’s the same as the business’s strategy documents

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– A business sets its objectives based on the overall goals of the business (as set out in its mission statement). Once the objectives have been set, the business is able to produce a set of budgets based on these. Budgets are usually stated in money (£) terms, but sometimes they have quantities only (such as the production budget).
  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 – 18 September 2023

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

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Budgeted and actual results are as follows:

  • materials (kgs per unit) budgeted 24 AND actual 26
  • materials (price per kg) budgeted £12 AND actual £16
  • labour (hours per unit) budgeted 8 AND actual 6
  • labour (rate per hour) budgeted £25 AND actual £22

What is the total variance per unit manufactured?

Select ONE answer:

  1. £60 adverse
  2. £72 adverse
  3. £86 adverse
  4. £120 adverse

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 – (24 * £12 + 8 * £25) – (26 * £16 + 6 * £22)
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 17 September 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 shows information for the last three months’ production for Alex Ltd

  • total of manufacturing hours: Budgeted 240,000 hours AND Actual 270,000 hours
  • hours to make one unit: Budgeted 3.0 hours AND Actual 2.7 hours

The budgeted manufacturing costs for the three month period are £720,000.

What is the budgeted cost per unit?

Select ONE answer:

  1. £1.5
  2. £2.25
  3. £3
  4. £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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

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