Tag: Management Accounting

Accounting Multiple Choice Question – 16 October 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 financial data in the table below relates to a small business called Alex Trading:.

  • Sales – £6,000
  • variable costs – £4,500
  • fixed costs – £900
  • net profit – £600

What is the contribution to sales ratio?

Select ONE answer:

  1. 10%
  2. 25%
  3. 33.33%
  4. 75%

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 == > £1,500 (£900 + £600) / £6,000 = 25%
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 21 September 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 ltd is considering buying equipment at a cost of £80,000.

This equipment will save £40,000 per annum in operating costs over the next three years, after which it will have no scrap value.

Using the following discount factors:

  • year 0 – 1.000
  • year 1 – 0.909
  • year 2 – 0.826 
  • year 3 – 0.751

What is the net present value of the equipment?

Select ONE answer:

  1. £(10,600)
  2. £19,440
  3. £40,000
  4. £99,440

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 = -£80k + (£40k *0.909) + (£40k * 0.826) + (£40k * 0.751)
  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 – 20 September 2023

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

Photo by Olya Kobruseva on Pexels.com

What would NOT be included in a net present value (NPV) capital investment appraisal?

Select ONE answer:

  1. any expenditure incurred after the payback period
  2. depreciation of capital expenditure
  3. increase in working capital
  4. residual value of the capital 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 2

  1. Not correct
  2. 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 – 19 September 2023

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

Photo by Olya Kobruseva on Pexels.com

The following data relates to production of a product for a month:

  • quantity produced (units) – 610
  • actual kilos of material used – 4,350 kgs
  • standard kilos of material – 4,270 kgs
  • standard cost per kilo – £9
  • material price variance – £435 Favourable

What was the actual cost of material used?

Select ONE answer:

  1. £38,430
  2. £38,715
  3. £39,150
  4. £39,585

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 – £4,350 * £9 – £435
  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 – 18 September 2023

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

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Budgeted and actual results are as follows:

  • materials (kgs per unit) budgeted 24 AND actual 26
  • materials (price per kg) budgeted £12 AND actual £16
  • labour (hours per unit) budgeted 8 AND actual 6
  • labour (rate per hour) budgeted £25 AND actual £22

What is the total variance per unit manufactured?

Select ONE answer:

  1. £60 adverse
  2. £72 adverse
  3. £86 adverse
  4. £120 adverse

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 – (24 * £12 + 8 * £25) – (26 * £16 + 6 * £22)
  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.