{"id":5310,"date":"2021-09-01T14:00:17","date_gmt":"2021-09-01T08:30:17","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=5310"},"modified":"2025-10-07T19:23:25","modified_gmt":"2025-10-07T13:53:25","slug":"material-cost-mcq","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/material-cost-mcq\/","title":{"rendered":"Material Cost MCQ | Cost Accounting (Free Resource)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\">Material Cost MCQ<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Material-Cost-MCQ--1024x576.png\" alt=\"Material Cost MCQ \" class=\"wp-image-5313 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Material-Cost-MCQ--1024x576.png 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Material-Cost-MCQ--300x169.png 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Material-Cost-MCQ--768x432.png 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Material-Cost-MCQ--1536x864.png 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Material-Cost-MCQ-.png 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Material Cost MCQ<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\">MCQs on other topics of Cost Accounting <\/a><\/strong><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf <\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. The most important element of cost is ____________ .<br><\/strong>a) Material <br>b) Overheads <br>c) Labour <br>d) Chargeable Exp.<\/p>\n\n\n\n<p><strong>2. Request to the supplier to supply material is an _____________ .<br><\/strong>a) re-order  <br>b) Purchase Order <br>c) sale invoice <br>d) None of the above<\/p>\n\n\n\n<p><strong>3. <em>___________<\/em> are fixed to control inventory.<br><\/strong>a) Maximum Level <br>b) Minimum Level <br>c) Re-Order Level <br>d) Inventory Levels<\/p>\n\n\n\n<p><strong>4. ____________ indicates maximum stock to be maintained.<br><\/strong>a) Maximum Level <br>b) Minimum Level <br>c) Re-Order Level <br>d) Danger Level<\/p>\n\n\n\n<p><strong>5) Economical size of order is called as ____________ .<br><\/strong>a) Production <br>b) EOQ <br>c) None of the above<\/p>\n\n\n\n<p><strong>6) ___________ shows minimum stock to be maintained.<br><\/strong>a) Minimim Stock Level <br>b) Maximum Stock Level <br>c) Average Stock Level <br>d) None of the above<\/p>\n\n\n\n<p><strong>7) Scientific purchasing begins with __________.<br><\/strong>a) Indenting <br>b) Inspection <br>c) Ordering <br>d) Selection of the supplier<\/p>\n\n\n\n<p><strong>8) Goods received note is prepared by ___________.<br><\/strong>a) Purchase <br>b) Stores <br>c) Finance <br>d) Sales<\/p>\n\n\n\n<p><strong>9) ________ shows stock position at the bin.<br><\/strong>a) EOQ <br>b) ABC <br>c) Bin Card <br>d) None of the above<\/p>\n\n\n\n<p><strong>10) ___________ is decided on the basis of ordering cost and carrying cost.<br><\/strong>a) EOQ <br>b) Maximum Stock Level <br>c) Minimum Stock Level <br>d) Average Stock Level<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>11. __________ locks of maximum working capital.<br><\/strong>a) Average Stock Level <br>b) Maximum Stock Level <br>c) Minimum Stock Level <br>d) None of the above<\/p>\n\n\n\n<p><strong>12. __________ analysis shows classification of inventory into three categories.<br><\/strong>a) EOQ <br>b) ABC <br>c) Bin Card <br>d) None of the above<\/p>\n\n\n\n<p><strong>13. ____________ class items require loose control.<br><\/strong>a) C <br>b) A <br>c) B <br>d) None of the above<\/p>\n\n\n\n<p><strong>14. ____________ class items are costliest.<br><\/strong>a) A <br>b) B <br>c) C <br>d) None of the above<\/p>\n\n\n\n<p><strong>15. __________ class items requires more attention.<br><\/strong>a) B <br>b) A<br>c) C <br>d) None of the above<\/p>\n\n\n\n<p><strong>16. __________ class items require moderate control.<br><\/strong>a) C <br>b) B <br>c) A <br>d) None of the above<\/p>\n\n\n\n<p><strong>17. The function of Purchase Department is __________<br><\/strong>a) Purchase of materials <br>b) Sale of scrap <br>c) Production of goods <br>d) Sale of goods<\/p>\n\n\n\n<p><strong>18. Purchase order is a _________.<br><\/strong>a) Request to the supplier to supply materials <br>b) Request to the supplier to verify the stock <br>c) Acknowledgement of goods <br>d) Sale invoice<\/p>\n\n\n\n<p><strong>19. Goods received note is normally prepared in ________ .<br><\/strong>a) six copies <br>b) five copies <br>c) four copies <br>d) five copies<\/p>\n\n\n\n<p><strong>20. The essentials of sound material control procedure include :<br><\/strong>a) Coordination <br>b) Internal check <br>c) Reporting <br>d) All of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. Purchase Requisition is a _________ of material.<\/strong><br>a) Requirement <br>b) Purchase return <br>c) Supply <br>d) None of the above<\/p>\n\n\n\n<p><strong>22. <em>__________<\/em> shows movement of each item of material.<\/strong><br>a) Delivery material <br>b) Stores ledger <br>c) Supplier ledger <br>d)  None of the above<\/p>\n\n\n\n<p><strong>23. Material control includes control over ________ .<\/strong><br>a) Inventory control <br>b) Material <br>c) Control over labour <br>d) Control over overheads<\/p>\n\n\n\n<p><strong>24. Under _________ stock is verified at the end of a certain period.<\/strong><br>a) Continuosly <br>b) Certain period <br>c) Periodic Inventory <br>d) None of the above<\/p>\n\n\n\n<p><strong>25. Under _________ stock is verified continuously.<\/strong><br>a) ABC Analysis <br>b) Bill of Material <br>c) Perpetual Inventory system <br>d)  None of the above<\/p>\n\n\n\n<p><strong>26. _________ is a technique of selective control.<\/strong><br>a) Perpetual Inventory system <br>b) Bill of Material <br>c) ABC Analysis <br>d) None of the above<\/p>\n\n\n\n<p><strong>27. _________ helpful for calculation of the cost of material of a job.<br><\/strong>a) Bill of Material <br>b) Supply of Material <br>c) Requirement of Material <br>d) None of the above<\/p>\n\n\n\n<p><strong>28. Material Inspection Note is _________.<br><\/strong>a) prepared and forwarded to the Stores Department <br>b) Signed by the store keeper <br>c) Signed by the supplier <br>d) Signed by production manager<\/p>\n\n\n\n<p><strong>29. Bin Card is _________ .<br><\/strong>a) A inspection note <br>b) A continuous record of stock stored <br>c) A statement of delivery of materials <br>d) A statement of issue of material<\/p>\n\n\n\n<p><strong>30. ABC Analysis is ________ .<br><\/strong>a) analysis of A, B and C type of material <br>b) a technique of selective control. <br>c) a technique under which control is always best. <br>d) none of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>21) Requirement  22) Stores ledger  23) Material  24) Periodic Inventory  25) Perpetual Inventory system  26) ABC Analysis  27) Bill of Material  28) prepared and forwarded to the Stores Department  29) a continous record of stock stored  30) a technique of selective control<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>31. Issue of material priced at latest purchase price under _________ method.<br><\/strong>a) LIFO <br>b) FIFO <br>c) Simple Average<br>d) Weighted Average<\/p>\n\n\n\n<p><strong>32. Under rising prices pricing of material issued at latest price under __________ method.<br><\/strong>a) FIFO <br>b) LIFO <br>c) Weighted Average <br>d) Simple Average<\/p>\n\n\n\n<p><strong>33. Fluctuation in prices are averaged out under ____________ method.<br><\/strong>a) Weighted Average <br>b) Simple Average <br>c) FIFO <br>d) None of the above<\/p>\n\n\n\n<p><strong>34. Inventory valuation is done at latest price under __________ method.<br><\/strong>a) FIFO <br>b) LIFO <br>c) Average <br>d) None of the above<\/p>\n\n\n\n<p><strong>35. _________ method is recognised under AS 2.<br><\/strong>a) FIFO\/Weighted Average<br>b) Best stock method <br>c) Simple Average <br>d) None of the above<\/p>\n\n\n\n<p><strong>36. _________ method is followed when lots of materials are not identifiable.<\/strong><br>a) FIFO <br>b) LIFO <br>c) Weighted Average<br>d) None of the above<\/p>\n\n\n\n<p><strong>37. ___________ methods are followed when lots of materials are identifiable.<\/strong><br>a) Simple Average <br>b) Weighted Average <br>c) FIFO\/LIFO <br>d) None of the above<\/p>\n\n\n\n<p><strong>38. Inventory is valued at more recent prices under __________ method.<br><\/strong>a) Best stock method <br>b) FIFO <br>c) LIFO <br>d) Weighted Average<\/p>\n\n\n\n<p><strong>39. __________ decrease cost of materials.<\/strong><br>a) Standard price <br>b) Trade Discount <br>c) Cost of material <br>d) None of the above<\/p>\n\n\n\n<p><strong>40. Taxes and duties _________  cost of material.<\/strong><br>a) Does not affect cost of material <br>b) Increase <br>c) Decrease <br>d) None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>31) LIFO  32) LIFO  33) Weighted Average  34) FIFO  35) FIFO\/WA  36) WA  37) FIFO\/LIFO  38) FIFO<br>39) Trade Discount  40) Increase<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>41. _________ method is logical.<\/strong><br>a) LIFO <br>b) FIFO <br>c) Average <br>d) None of the above<\/p>\n\n\n\n<p><strong>42. Under __________ method cost of goods sold represents cost of earlier purchases.<br><\/strong>a) Simple Average <br>b) Weighted Average <br>c) LIFO <br>d) FIFO<\/p>\n\n\n\n<p><strong>43. Under _________ method cost of goods sold represents cost of recent purchases.<br><\/strong>a) LIFO <br>b) FIFO <br>c) Average <br>d) None of the above<\/p>\n\n\n\n<p><strong>44. Under rising prices higher income is reported under _________ method.<br><\/strong>a) LIFO <br>b) Simple Average <br>c) Weighted Average <br>d) FIFO<\/p>\n\n\n\n<p><strong>45. Under rising prices lower income is reported under __________ method.<br><\/strong>a) LIFO <br>b) FIFO <br>c) Weighted Average <br>d) None of the above<\/p>\n\n\n\n<p><strong>46. __________ method is advantageously used in process industries.<\/strong><br>a) W.A. <br>b) Simple Average <br>c) LIFO <br>d) FIFO<\/p>\n\n\n\n<p><strong>47. Stores Department maintains a record in which a separate folio is maintained for each item _______ .<br><\/strong>a) Stores Ledger <br>b) Bin Card <br>c) Stock Register <br>d) Bill of Materials<\/p>\n\n\n\n<p><strong>48. FIFO method is :<br><\/strong>a) Logical <br>b) Illogical <br>c) Recognised by AS2 <br>d) both a &amp; c<\/p>\n\n\n\n<p><strong>49. Under perpetual Inventory system stock is ascertained :<br><\/strong>a) Periodically <br>b) Continuously <br>c) At the end of the year <br>d) None of the above<\/p>\n\n\n\n<p><strong>50. Issue of material under ___________ method is from oldest lots.<br><\/strong>a) FIFO <br>b) LIFO <br>c) Average <br>d) None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>41) FIFO  42) FIFO  43) LIFO  44) FIFO  45) LIFO  46) W.A.  47) Stores Ledger  48) Both a &amp; c  49) Continuously  50) FIFO<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":5313,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[2305,566],"class_list":["post-5310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-misc","tag-material-cost-mcq","tag-material-costing"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=5310"}],"version-history":[{"count":3,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5310\/revisions"}],"predecessor-version":[{"id":39286,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5310\/revisions\/39286"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/5313"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=5310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=5310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=5310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}