Material Cost MCQ | Cost Accounting (Free Resource)

41. _________ method is logical.
a) LIFO
b) FIFO
c) Average
d) None of the above

42. Under __________ method cost of goods sold represents cost of earlier purchases.
a) Simple Average
b) Weighted Average
c) LIFO
d) FIFO

43. Under _________ method cost of goods sold represents cost of recent purchases.
a) LIFO
b) FIFO
c) Average
d) None of the above

44. Under rising prices higher income is reported under _________ method.
a) LIFO
b) Simple Average
c) Weighted Average
d) FIFO

45. Under rising prices lower income is reported under __________ method.
a) LIFO
b) FIFO
c) Weighted Average
d) None of the above

46. __________ method is advantageously used in process industries.
a) W.A.
b) Simple Average
c) LIFO
d) FIFO

47. Stores Department maintains a record in which a separate folio is maintained for each item _______ .
a) Stores Ledger
b) Bin Card
c) Stock Register
d) Bill of Materials

48. FIFO method is :
a) Logical
b) Illogical
c) Recognised by AS2
d) both a & c

49. Under perpetual Inventory system stock is ascertained :
a) Periodically
b) Continuously
c) At the end of the year
d) None of the above

50. Issue of material under ___________ method is from oldest lots.
a) FIFO
b) LIFO
c) Average
d) None of the above

Answer: 41) FIFO 42) FIFO 43) LIFO 44) FIFO 45) LIFO 46) W.A. 47) Stores Ledger 48) Both a & c 49) Continuously 50) FIFO