Accounting For Material Quiz: Test!
(207).jpg "Accounting For Material Quiz: Test!")
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- 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 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 fluctuates 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
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