Accounting Multiple Choice Question – 17 July 2024

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

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Lucy who is the chief executive of Alex plc has recently been discussing problems caused by the centralised nature of the company’s decision-making processes, which have led to accusations from staff and some customers that the company is increasingly slow and unresponsive.

Lucy is keen to increase the amount of decentralised decision-making over the next year.

Which THREE of the following are likely to increase the amount of decentralisation that is possible within Alex plc?

A The company’s authoritarian management style
B The well-skilled workforce
C The company’s large size
D The slow pace of technological change in the company’s markets
E The effectiveness of communication across the company

Select ONE answer:

  1. ABC
  2. ACD
  3. BCD
  4. BCE

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-Decentralisation depends on workforce ability (B) company size (C) – the larger the organisation, the harder it is to centralise – and effective communication (E), which is an essential ingredient of effective delegation. Centralisation and decentralisation refer to the extent to which authority for decision-making is either retained at the top of the organisation or delegated to lower levels.

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Accounting Multiple Choice Question – 15 July 2024

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

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Lucy has joined the finance department of a local business.

Her early impressions of the organisation are that its management belong to the ‘classical school’ because of their adherence to the concept of unity of command.

This means that in general the management believe that….?

Select ONE answer:

  1. A subordinate should receive orders from only one manager
  2. There should be only one manager of each activity
  3. Authority should flow down a single chain of command
  4. Work should be specialised into single tasks

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 – Unity of command means that any employee should have to report to, or receive orders from, only one manager. ‘Unity of direction’ is the principle that there should be only one manager of each activity (2).
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 14 July 2024

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

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Alex plc is a machine bureaucracy.

Which of the following characteristics is the company most likely to exhibit?

Select ONE answer:

  1. The technostructure exerts a pull towards standardised processes
  2. The operating core exerts a pull towards standardised skills
  3. The middle line exerts a pull towards fragmentation
  4. The support staff exert a pull towards collaboration

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 – Machine bureaucracy depends primarily on the standardisation of its operating work processes for co-ordination. Because of that the technostructure, which houses the analysts (technocrats) who do the standardising, emerges as the key part of the structure. When the operating core exerts a pull towards standardised skills (2), it is generally a professional bureaucracy. In a divisionalised structure, a good deal of power si delegated to market-based units in the middle line (3), whose efforts are coordinated by the standardisation of outputs through the extensive use of performance control systems.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 10 July 2024

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

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The human resources director of Alex plc wants new recruits in all areas of the company to have a copy of a chart showing its formal organisation structure.

Identify which of the following statements about the chart made by the director are true.

I  The chart will show the degree of decentralisation in Alex plc.

II  The chart will show the span of control in Alex plc.

III  The chart will show the scalar chain in Alex plc.

Select ONE answer:

  1. I and II only
  2. II and III only
  3. I and III only
  4. I and II and III

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. Notcorrect
  2. Correct  –>  The degree of decentralisation is a measure of how power and authority are passed down an organisation. This is not shown on an organisation chart, which concentrates on the shape of the organisation. The span of control refers to the number of subordinates working for a superior, while the scalar chain is the formal arrangement of authority or the organisation hierarchy. Both are shown not the chart.
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 9 July 2024

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

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What are the four elements of the procurement mix?

Select ONE answer:

  1. Price, product, place, promotion
  2. Quantity, quality, price, lead time
  3. Volume, variety, variation in demand and visibility
  4. Costs, competitors, customers and corporate objectives

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. Notcorrect
  2. Correct  –>  The four elements of the procurement mix are quantity, quality, price and lead time (2). Price, product, place and promotion (1) are the four elements of the product marketing mix, while volume, variety, variation in demand and visibility (3) are the four Vs of operations management. Costs, competitors, customers and corporate objectives (4) are the four Cs of pricing.
  3. Not correct
  4. Not correct

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