Previous Year Solved Question Papers

Previous Year Solved Question Papers

MCQs on Cost Accounting -17

1. Last in first out method is suitable in times of………………

(A) Rising prices
(B) falling prices
(C) fluctuating prices
(D) none of these



2. Average cost method of valuing material issues is suitable when………….

(A) Prices rise
(B) prices fall
(C) prices fluctuate considerably
(D) none of these



3. Inflated price method of valuing material issues is suitable when…………

(A) Materials are subject to natural wastage
(B) prices rise
(C) prices fall
(D) none of these



4. Specific price method of valuing material issue is used when………….

(A) Materials are purchased for specific job or work order
(B) materials are subject to natural wastage
(C) prices fluctuate
(D) none of these



5. Market price method is considered to be the best method when…………..

(A) Quotations have to be sent
(B) prices fluctuate
(C) materials are subject to natural wastage
(D) none of these



6. A bill of material serves the purpose of………………… 

(A) Material requisition
(B) stores ledger
(C) material issue analysis sheet
(D) none of these



7. A bill of material is prepared in case of a …………………job

(A) Standard job
(B) non-standardized job
(C) both a & b
(D) none of these



8. Stock verification sheets are maintained to record the results of………

(A) Physical verification
(B) financial control
(C) financial verification
(D) quality verification



9. The quantity of material to be ordered at one time is known as…………

(A) Ordering quantity
(B) commercial order quantity
(C) economic order quantity
(D) none of these



10. …………………represents that quantity of material which is normally ordered when a particular material reaches reordering level.

(A) maximum level
(B) re-order level
(C) minimum level
(D) Re-order quantity



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