Tag: Management Accounting

Accounting Multiple Choice Question – 30 May 2024

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

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Organisations can be defined or described in various ways.

Which THREE of the following are the key characteristics that are shared by all organisations?

A Synergy
B Social arrangement
C Collective goals
D Specialisation
E Controlled performance
F Exchange of goods and services

Select ONE answer:

  1. A, D, F
  2. B, D, F
  3. B, C, E
  4. C, D, E

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 – An organisation is a social arrangement that pursues collective goals, that controls its own performance, and, in addition, that has a boundary separating it from its environment. The other options are all ways that enable an organisation to increase productivity.
  4. Not correct

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Accounting Multiple Choice Question – 23 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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Alex Trading hopes to make £25,000 of profit next year.

One product is made: the Stafford garden shed.

Each Stafford shed is sold for £590 and has a variable cost of £240.

Monthly fixed costs are £4,275.

How many Stafford sheds does Alex Trading need to make next year and sell to achieve the target profit of £25,000?

Select ONE answer:

  1. 147 sheds
  2. 72 sheds
  3. 84 sheds
  4. 218 sheds

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 – The formula used to calculate the number of units required to achieve a target profit is — > Number of units = (annual fixed costs + target profit) / contribution per unit == > Contribution per unit = 590 – 240 = £350 per unit == > Annual fixed costs = 12 x £4,275 = £51,300 == > Number of units = (51,300 + 25,000) / 350 = 218 sheds

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Accounting Multiple Choice Question – 21 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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Alex Manufacturing Ltd has made 1,800 calculators in one month.

Each calculator had a variable cost of £5.40 and a selling price of £11.

The fixed costs for the month were £8,000.

How much contribution did Alex Manufacturing Ltd make in the month?

Select ONE answer:

  1. £10,080
  2. £19,800
  3. £2,080
  4. £1,720

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 – Contribution per unit = selling price per unit – variable cost per unit = 11.00 – 5.40 = £5.60 per unit. Total contribution = number of units x contribution per unit = 1,800 x £5.60 = £10,080
  2. Not correct
  3. Not correct
  4. Not correct

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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 – 13 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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The following figures are given for a Alex Manufacturing Ltd’s factory’s overheads and machine hours worked.

   machine hours  total overhead costs  overhead absorption rate

  • budgeted   122,000 hrs   £268,400   £2.20 
  • actual    116,000hrs   £261,000   £2.25

What was the under- or over-absorption of overhead for the quarter?

Select ONE answer:

  1. £5,800 over-absorbed
  2. £5,800 under-absorbed
  3. £7,400 over-absorbed
  4. £7,400 under-absorbed

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 – (6,000 hrs * £2.2) – (£268,400 – £261,000)
  3. Not correct
  4. Not correct

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