Accounting Multiple Choice Question – 27 February 2021

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 below shows cost data for a product. 

  • materials   —   £22
  • direct labour (4 standard hours × $4.00)   —   £16

The total standard overheads are £250,000 and standard direct labour hours are 100,000. Overheads are absorbed on the basis of direct labour hours. 

What will the standard selling price be, if the company seeks to earn a standard profit of 25% on factory cost?

Select ONE answer:

  1. £47.50
  2. £48.00
  3. £50.62
  4. £60.00

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 – £22 + £16 + (250,000 / 100,000 *4) ===> £48 * 1.25

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Accounting Multiple Choice Question – 26 February 2021

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

apple devices books business coffee
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The standard time for a job is set at 50 hours. The standard direct labour rate is £8.00 per hour.

The job was completed in 65 hours at a direct labour cost of £455.

What is the direct labour rate variance?

Select ONE answer:

  1. £55 adverse
  2. £55 favourable
  3. £65 adverse
  4. £65 favourable 

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 – £455 / 65 = £7 ==> £8 – £7 * 65 hours = £65 FAV

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Accounting Multiple Choice Question – 25 February 2021

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

apple devices books business coffee
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The table below shows an annual budget for a company.

As the actual production is only 9000 units, the company flexes the budget.

What is the revised total budgeted cost?

Select ONE answer:

  1. £36,000
  2. £36,400
  3. £37,200
  4. £38,200

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 – £4,000 + (£36,000 * 0.9)
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 24 February 2021

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A company has a stock of 10,000 units of finished goods. It budgets to produce 110,000 units which, after sales, will increase its stock to 20,000 units.

The table below shows the resources required for the budgeted production, and the available resources.

Market research shows that the demand for the product will be for 90,000 units. What is the principal limiting factor in this case?

Select ONE answer:

  1. direct labour
  2. machine hours
  3. material
  4. sales

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.

Accounting Multiple Choice Question – 23 February 2021

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A company’s debtors total £27,000. There is a collection period of 30 days.

The budget for the coming year provides for an increased turnover of 50% with the relevant collection period being increased to 60 days.

What will the year-end debtors be?

Select ONE answer:

  1. £13,500
  2. £27,000
  3. £40,500
  4. £81,000

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – £27,000 * 2 * 2

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