Accounting For Material Quiz: Test!

17 Questions | By OnlineSmartClass | Updated: May 20, 2022 | Attempts: 2848

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Accounting For Material Quiz: Test! - Quiz

Accounting, as we all know, is a broad subject. Today, with this 'Accounting for Materials quiz,' we will test your knowledge about it by asking you questions based on simple accounting concepts- material accounting. Just like every other accounting topic, materials accounting also covers a wide range of financial documents and costs. Let's see how much you know about this subject. Try to hit a score above 70% in order to pass this test.

Questions and Answers

1.

Direct material is a _______.
- A.
  
  Fixed cost
- B.
  
  Variable cost
- C.
  
  Semi variable cost
- D.
  
  Fixed income
2.

Direct material is a _________.
- A.
  
  Manufacturing cost.
- B.
  
  Administration cost
- C.
  
  Selling and distribution cost
- D.
  
  None of the above
3.

In most industries, what is the most important element of cost?
- A.
  
  Material
- B.
  
  Labour
- C.
  
  Overheads.
- D.
  
  None of them
4.

Which of the following options can be categorized as an accounting record?
- A.
  
  Bill of Materials
- B.
  
  Bin card
- C.
  
  Stores ledger
- D.
  
  All of these
5.

Name the document that 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.

The ________ type of loss is considered to be the normal loss of materials.
- A.
  
  Loss due to accidents
- B.
  
  Pilferage
- C.
  
  Loss due to breaking the bulk
- D.
  
  Loss due to careless handling of materials
7.

Select the pricing method in which costs log behind the current economic values.
- A.
  
  Last-in-first-out price
- B.
  
  First-in-first-out price
- C.
  
  Replacement price
- D.
  
  Weighted average price
8.

Name the stock control method that aims at concentrating efforts on selected items of materials.
- A.
  
  Perpetual inventory system
- B.
  
  Materials turnover
- C.
  
  Maximum, minimum and re-order level setting
- D.
  
  ABC analysis
9.

In base stock method of pricing the material issues, what does the term ‘base stock’ represent?
- A.
  
  Quantity of stock being issued
- B.
  
  Stock in balance
- C.
  
  Minimum stock
- D.
  
  Maximum stock
10.

Which of the following cost items should NOT be treated as direct material ?
- A.
  
  Electricity representing 90% of the total cost.
- B.
  
  Sand paper used in production
- C.
  
  Thread used in attaching garments
- D.
  
  All of the above
11.

Continuous stock-taking is a part of _________.
- A.
  
  Annual stock-taking
- B.
  
  Perpetual inventory
- C.
  
  ABC analysis.
- D.
  
  All of them
12.

In which of the following methods, materials are issued at the price prevailing at the time of issue ?
- A.
  
  Inflated price method
- B.
  
  Standard price method
- C.
  
  Replacement price method
- D.
  
  Specific price method.
13.

The storekeeper should initiate a purchase requisition when stock reaches.
- A.
  
  Minimum level
- B.
  
  Maximum level
- C.
  
  Re-order level
- D.
  
  Average level.
14.

Which of these material losses should be transferred to Costing Profit and Loss Account?
- A.
  
  Loss by evaporation
- B.
  
  Loss due to improper storage of materials
- C.
  
  Loss due to breaking the bulk
- D.
  
  All of these.
15.

When material prices fluctuate widely, the method of pricing that gives absurd results is called _________.
- A.
  
  Simple average price
- B.
  
  Weighted average price
- C.
  
  Moving average price
- D.
  
  Inflated price.
16.

When price fluctuates widely, which method smooth out the effect of fluctuations?
- A.
  
  Simple average
- B.
  
  Weight average
- C.
  
  FIFO
- D.
  
  LIFO
17.

Pick the method in which the charge to production is not at actual cost.
- A.
  
  Weighted average price
- B.
  
  Standard price
- C.
  
  Replacement price
- D.
  
  All of these