Tag: Management Accounting

Accounting Multiple Choice Question – 12 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 Ltd has fixed costs of £100,000.

Alex Trading Ltd sells a single product for £25 per unit, and its contribution to sales ratio is 40 %.

What is the break-even point in units for Alex Trading Ltd?

Select ONE answer:

  1. 6,667
  2. 10,000
  3. 40,000
  4. 250,000

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 2

  1. Not correct
  2. Correct – 40% of £25 = £10 == > £100,000 FC / £10 = 10,000 units
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 11 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 Ltd has the information shown below.

  • actual sales for November – £320,000
  • break-even sales for November – £400,000
  • total fixed costs for November – £150,000

What is the margin of safety for November?

Select ONE answer:

  1. £80k negative
  2. £80k positive
  3. £170k negative
  4. £250k positive

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 – £400k – £320k
  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 – 10 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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What best describes the cost of direct materials plus direct labour costs?

Select ONE answer:

  1. absorption cost
  2. marginal cost
  3. prime cost
  4. total cost

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
  4. Not correct

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

Accounting Multiple Choice Question – 9 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 name is given to the difference between a company’s actual sales and break-even sales?

Select ONE answer:

  1. margin of safety
  2. marginal cost
  3. marginal C-V-P (cost-volume-profit) analysis
  4. marginal revenue

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

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

Accounting Multiple Choice Question – 26 November 2023

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

Which expense is included in prime cost of manufacturing?

Select ONE answer:

  1. depreciation of machinery
  2. purchase of factory machinery
  3. purchase of raw materials
  4. supervisor’s wages

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
  4. Not correct

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