Material Cost MCQ | Cost Accounting (Free Resource)

31. Issue of material priced at latest purchase price under _________ method.
a) LIFO
b) FIFO
c) Simple Average
d) Weighted Average

32. Under rising prices pricing of material issued at latest price under __________ method.
a) FIFO
b) LIFO
c) Weighted Average
d) Simple Average

33. Fluctuation in prices are averaged out under ____________ method.
a) Weighted Average
b) Simple Average
c) FIFO
d) None of the above

34. Inventory valuation is done at latest price under __________ method.
a) FIFO
b) LIFO
c) Average
d) None of the above

35. _________ method is recognised under AS 2.
a) FIFO/Weighted Average
b) Best stock method
c) Simple Average
d) None of the above

36. _________ method is followed when lots of materials are not identifiable.
a) FIFO
b) LIFO
c) Weighted Average
d) None of the above

37. ___________ methods are followed when lots of materials are identifiable.
a) Simple Average
b) Weighted Average
c) FIFO/LIFO
d) None of the above

38. Inventory is valued at more recent prices under __________ method.
a) Best stock method
b) FIFO
c) LIFO
d) Weighted Average

39. __________ decrease cost of materials.
a) Standard price
b) Trade Discount
c) Cost of material
d) None of the above

40. Taxes and duties _________ cost of material.
a) Does not affect cost of material
b) Increase
c) Decrease
d) None of the above

Answer: 31) LIFO 32) LIFO 33) Weighted Average 34) FIFO 35) FIFO/WA 36) WA 37) FIFO/LIFO 38) FIFO 39) Trade Discount 40) Increase