Material Cost MCQ | Cost Accounting (Free Resource)

11. __________ locks of maximum working capital.
a) Average Stock Level
b) Maximum Stock Level
c) Minimum Stock Level
d) None of the above

12. __________ analysis shows classification of inventory into three categories.
a) EOQ
b) ABC
c) Bin Card
d) None of the above

13. ____________ class items require loose control.
a) C
b) A
c) B
d) None of the above

14. ____________ class items are costliest.
a) A
b) B
c) C
d) None of the above

15. __________ class items requires more attention.
a) B
b) A
c) C
d) None of the above

16. __________ class items require moderate control.
a) C
b) B
c) A
d) None of the above

17. The function of Purchase Department is __________
a) Purchase of materials
b) Sale of scrap
c) Production of goods
d) Sale of goods

18. Purchase order is a _________.
a) Request to the supplier to supply materials
b) Request to the supplier to verify the stock
c) Acknowledgement of goods
d) Sale invoice

19. Goods received note is normally prepared in ________ .
a) six copies
b) five copies
c) four copies
d) five copies

20. The essentials of sound material control procedure include :
a) Coordination
b) Internal check
c) Reporting
d) All of the above

Answers: 11) Maximum Stock Level 12) ABC 13) C 14) A 15) A 16) B 17) Purchase of materials 18) Request to the supplier to supply materials 19) Six copies 20) All of the above