Costing MCQs

Question 1

ABC analysis is ________.

Accepted Answer

Always better Control

Answer

At best Control

Answer

Average better Control

Answer

All best control

Question 2

___________ is the value of economic resources used as a result of producing or doing the thing costed.

Accepted Answer

Cost

Answer

Inventory

Answer

Labour

Answer

overhead

Question 3

Perpetual inventory system involves __________

Accepted Answer

bincard and stores ledger

Answer

bill of material and material requisition

Answer

purchase requisition and purchase order

Answer

inward and outward invoices

Question 4

FIFO is ________.

Accepted Answer

First In First Out

Answer

Fast Investment in Future Order

Answer

Fast In Fast Out

Answer

Fast Issue Of Fast Order

Question 5

LIFO method of pricing of materials is more suitable when _________.

Accepted Answer

material prices are rising

Answer

material prices are falling

Answer

material prices are constant

Answer

material prices are fluctuating

Question 6

Average method of pricing the material issues is useful when ___________.

Accepted Answer

material prices are fluctuating

Answer

material prices are rising

Answer

material prices are falling

Answer

material prices are constant

Question 7

Scrap is ________.

Accepted Answer

residue of material

Answer

wastage of material

Answer

surplus material

Answer

abnormal loss of material

Question 8

Material is issued by store keeper against ________.

Accepted Answer

material requisition

Answer

material order

Answer

goods received note

Answer

purchase requisition

Question 9

EOQ stands for ________.

Accepted Answer

Economic Order Quantity

Answer

Essential Order Quantity

Answer

Economic Output Quantity

Answer

Essential Output Quantity