Neco Model Questions Vol1 2024 Financial Accounting Question 18

Practice objective / multiple choice question 18 from the 2024 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 18 NECO_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

The original budget for a government department for the year 2024 was ₦200 million. Actual expenditure recorded at year‑end was ₦185 million. Inflation during the year was 8 % on the budgeted amounts. Compute the inflation‑adjusted budget, the variance between the adjusted budget and the actual expenditure, and state whether the variance is favourable or unfavourable.

Answer Options

A. Adjusted budget = ₦216 million; variance = ₦31 million unfavourable
Correct Answer B. Adjusted budget = ₦216 million; variance = ₦31 million favourable
C. Adjusted budget = ₦208 million; variance = ₦23 million favourable
D. Adjusted budget = ₦224 million; variance = ₦39 million favourable
Correct Answer
B
Correct Option:
Adjusted budget = ₦216 million; variance = ₦31 million favourable

About This Question

This is Neco Model Questions Vol1 2024 Financial Accounting Question 18. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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