Tag: Cambridge Assessment

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 – 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.

Accounting Multiple Choice Question – 4 November 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

A product manufactured by Alex Trading plc uses two processes (process 1 followed by process 2).

What is the full cost of the materials used in process 2?

Select ONE answer:

  1. the cost of materials added in process 2
  2. the cost of materials used in process 1 and materials added in process 2
  3. the cost of materials, labour, and overhead transferred from process 1
  4. the cost of materials, labour and overhead transferred from process 1 plus the cost of materials added in process 2

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

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

Accounting Multiple Choice Question – 3 November 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

Alex Manufacturing ltd makes three products for which the following details are given below.

The same material is used by all three products and it costs £2.00 per kilo.

There is a shortage of material.

In which priority should the product be made in order to achieve maximum profit from the available material?

Select ONE answer:

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

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