Tag: Full Cost

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.

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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

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