Material I

20 Questions | Total Attempts: 382

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Material Quizzes & Trivia

Material


Questions and Answers
  • 1. 
    Direct material is a
    • A. 

      Fixed cost

    • B. 

      Variable cost

    • C. 

      Semi variable cost

  • 2. 
    Direct material is a
    • A. 

      Manufacturing cost.

    • B. 

      Administration cost

    • C. 

      Selling and distribution cost

    • D. 

      Any of the above

  • 3. 
    In most of the industries, the most important element of cost is
    • A. 

      Material

    • B. 

      Labour

    • C. 

      Overheads.

  • 4. 
    Which of the following is an accounting record ?
    • A. 

      Bill of Materials

    • B. 

      Bin card

    • C. 

      Stores ledger

    • D. 

      All of these

  • 5. 
    Which of the following documents is used for issuing materials to production departments ?
    • A. 

      Purchase Requisition Note

    • B. 

      Stores requisition Note

    • C. 

      Goods Received Note

    • D. 

      Stores Credit Note

  • 6. 
    Which of the following is considered to be the normal loss of materials ?
    • A. 

      (a) Loss due to accidents

    • B. 

      (b) Pilferage

    • C. 

      (c) Loss due to breaking the bulk

    • D. 

      (d) Loss due to careless handling of materials

    • E. 

      (e) All of these

  • 7. 
    According to which of the following methods of pricing issues are close to current economic values ?
    • A. 

      (a) Last-in-first-out price

    • B. 

      (b) First-in-first-out price

    • C. 

      (c) Highest-in-first-out price

    • D. 

      (d) Weighted average price

  • 8. 
    In which of the following methods of pricing, costs log behind the current economic values ?
    • A. 

      (a) Last-in-first-out price

    • B. 

      (b) First-in-first-out price

    • C. 

      (c) Replacement price

    • D. 

      (d) Weighted average price

  • 9. 
    Which  of  the  following methods of stock control aims at concentrating efforts on selected items of materials ?
    • A. 

      (a) Perpetual inventory system

    • B. 

      (b) Materials turnover

    • C. 

      (c) Maximum, minimum and re-order level setting

    • D. 

      (d) ABC analysis

  • 10. 
    In base stock method of pricing the material issues, the term ‘base stock’ represents the
    • A. 

      (a) Quantity of stock being issued

    • B. 

      (b) Stock in balance

    • C. 

      (c) Minimum stock

    • D. 

      (d) Maximum stock

  • 11. 
    Which of the following items of cost should NOT be treated as direct material ?
    • A. 

      (a) Electricity representing 90% of the total cost.

    • B. 

      (b) Sand paper used in production

    • C. 

      (c) Thread used in attaching garments

    • D. 

      (d) All of the above

  • 12. 
    Continuous stock-taking is a part of
    • A. 

      (a) Annual stock-taking

    • B. 

      (b) Perpetual inventory

    • C. 

      (c) ABC analysis.

  • 13. 
    The classification of items in ABC analysis is made on the basis of
    • A. 

      (a) Investment value of materials

    • B. 

      (b) Consumption value of materi

    • C. 

      (c) Quantity of materials consumed

    • D. 

      (d) All of these.

  • 14. 
    In which of the following methods, issues of materials are priced at a pre-determined rate ?
    • A. 

      (a) Inflated price method.

    • B. 

      (b) Standard price method

    • C. 

      (c) Replacement price method

    • D. 

      (d) Specific price method.

  • 15. 
    In which of the following methods, materials are issued at the price prevailing at the time of issue ?
    • A. 

      (a) Inflated price method

    • B. 

      (b) Standard price method

    • C. 

      (c) Replacement price method

    • D. 

      (d) Specific price method.

  • 16. 
    The storekeeper should initiate a purchase requisition when stock reaches.
    • A. 

      (a) Minimum level

    • B. 

      (b) Maximum level

    • C. 

      (c) Re-order level

    • D. 

      (d) Average level.

  • 17. 
    Which of the following material losses should be transferred to Costing Profit and Loss Account ?
    • A. 

      (a) Loss by evaporation

    • B. 

      (b) Loss due to improper storage of materials

    • C. 

      (c) Loss due to breaking the bulk

    • D. 

      (d) All of these.

  • 18. 
    When material prices fluctuate widely, the method of pricing that gives absurd results is
    • A. 

      (a) Simple average price

    • B. 

      (b) Weighted average price

    • C. 

      (c) Moving average price

    • D. 

      (d) Inflated price.

  • 19. 
    When price fluctuate widely, the method that will smooth out the effect of fluctuations is
    • A. 

      (a) Simple average

    • B. 

      (b) Weight average

    • C. 

      (c) FIFO

    • D. 

      (d) LIFO

  • 20. 
    In which of the following methods, the charge to production is not at actual cost ?
    • A. 

      (a) Weighted average price

    • B. 

      (b) Standard price

    • C. 

      (c) Replacement price

    • D. 

      (d) All of these