Cost Accounting Important Multiple choice questions (MCQs) B.COM (Hons) : Gauhati University Cost Accounting Important MCQS, Dibrugarh University Cost Accounting Important MCQS, Ravindranath Tagore University Cost Accounting Important MCQS,Cost Accounting Important Multiple Choice Questions Answers.
In this article you will get very very important Cost Accounting Unit-2 Element Of Cost : Material MCQs for B.com (Hons). Which can be Very Useful for scoring a good marks in your Semester & Sessional Exams Conduct by Colleges/Universities.
COST ACCOUNTING MCQS
Unit 2
ELEMENT OF COST : MATERIAL
Q.1 (A). Fill in the blanks with appropriate word or words :
(i)_____ shows the quantity of materials only.
Ans: Bin Card
(ii)_____ represents the quantity of materials which must be maintained all the times to keep the production unaffected due to shortage.
Ans: Minimum Stock level.
(iii) The Purchase requisition is prepared by_____
Ans: Store keeper
(iv) In ABC analysis 'A' stand for_____.
Ans: Costlier material
(v) Materials should be issued by the store keeper against____slip.
Ans: Requisition
(vi) Stock verification sheets are maintained to record the resul of______.
Ans: Physical verification
(vii) Store Ledger is kept and maintained in_____.
Ans: Cost Office
(viii) Goods Received Note is prepared by the______.
Ans: Receiving department
(ix) Transfer of surplus material from one job or work is recorded is_____.
Ans: Material transfer note
(x)_____is discount allowed to the bulk purchaser.
Ans: Quantity Discount
(xi) ______is a document which records the return of unused materials.
Ans: Material Return note.
QI(B). State whether the following statement is 'True' or 'False',
(i) Waste and scrap of material have small realization value.
Ans : False
(ii) Slow moving materials have a high turnover ratio.
Ans : False
(iii) Bin Card are not the part of accounting records.
Ans: True
(iv) ABC analysis is based on the principle of management by exception.
Ans: True
(v) Store ledger is maintained inside the stores by store keeper.
Ans: False
(vi) Slow moving items are those the turnover ratio of which is low.
Ans: True
(vii) LIFO method of pricing issues is useful during periods of inflation.
Ans: True
(viii) In period of rising prices, profit and tax, liabilities under LIFO would be lower than under FIFO.
Ans : False
(ix) Reordering level is normally fixed between minimum level and maximum level.
Ans: True
(x) In LIFO method, closing stock is valued at oldest prices of materials in stock.
Ans: True
(xi) Bin card is maintained by the cost accounting department.
Ans: False
(xii) Bin card shows quantity and values of stores.
Ans: False
(xiii) The purchase requisition is prepared by the purchasing department.
Ans: False
(xiv) The purchase order is prepared by the purchasing department.
Ans: True
Q1(C). Choose the correct alternative :
(i) Material control covers :
(a) Purchase of material
(c) Storing of material
(b) Issue of material (d) All of the above
Ans : (d) All of the above
(ii)In ABC analysis 'A' category includes: (a) Materials whose consumption value is very high.
(b) Materials whose consumption value is moderate.
(c) Materials whose consumption value is low.
(d) None of the above
Ans: (a) Materials whose consumption value is very high.
(iii) Just-In-Time (JIT) approach is applied in which of the management following cases?
(a) Material pricing
(b) Inventory
(c) Cost sheet preparation
(d) EOQ
Ans: (b) Inventory management
(iv) Guiding factors for stores requisition is:
(a) minimum stock
(c) Reorder level level
(b) maximum stock
(d) All of the above level
Ans : (c) Reorder level
(v) In case of rising price level, the most suitable method for valuing material issued is :
(a) FIFO
(b) LIFO
(c) Simple Average
(d) weighted average
Ans : (b) LIFO
(vi) Which of the following is considered as normal loss of material?
(a) Pilferage
(b) Loss by fire
(c) Loss due to careless handling of material
(d) None of the above
Ans : (c) Loss due to careless handling of material
(vii) Contineous stock tracking is a part of (a) ABC analysis
(b) Annual stock tracking
(c) Perpetual Inventory
(d) None of these
Ans : (c) Perpetual Inventory
(viii) Which of the following considered as accounting record?
(a) Bin Card
(b)Bill of material
(c) Store ledger
(d) None of these
Ans: (c) Store ledger
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