Material Cost MCQ | Cost Accounting (Free Resource)

Material Cost MCQ

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1. The most important element of cost is ____________ .
a) Material
b) Overheads
c) Labour
d) Chargeable Exp.

2. Request to the supplier to supply material is an _____________ .
a) re-order
b) Purchase Order
c) sale invoice
d) None of the above

3. ___________ are fixed to control inventory.
a) Maximum Level
b) Minimum Level
c) Re-Order Level
d) Inventory Levels

4. ____________ indicates maximum stock to be maintained.
a) Maximum Level
b) Minimum Level
c) Re-Order Level
d) Danger Level

5) Economical size of order is called as ____________ .
a) Production
b) EOQ
c) None of the above

6) ___________ shows minimum stock to be maintained.
a) Minimim Stock Level
b) Maximum Stock Level
c) Average Stock Level
d) None of the above

7) Scientific purchasing begins with __________.
a) Indenting
b) Inspection
c) Ordering
d) Selection of the supplier

8) Goods received note is prepared by ___________.
a) Purchase
b) Stores
c) Finance
d) Sales

9) ________ shows stock position at the bin.
a) EOQ
b) ABC
c) Bin Card
d) None of the above

10) ___________ is decided on the basis of ordering cost and carrying cost.
a) EOQ
b) Maximum Stock Level
c) Minimum Stock Level
d) Average Stock Level

Answers: 1) Material 2) Purchase Order 3) Inventory Levels 4) Maximum Level 5) EOQ 6) Minimim Stock Level 7) Indenting 8) Stores 9) Bin Card 10) EOQ