58. Out of pocket costs involve payment to …………………
Correct : A. outsiders
59. Added value is the change in…………………
Correct : A. market value
60. .........................Accounting is not only a positive science but also a normative science because it includes techniques of budgetary controland
standard costing.
Correct : B. cost
61. Material control does not cover the following stage.
Correct : D. production
62. Material control aims at achieving effective…………
Correct : A. material management
63. Stores Ledger is maintained in the…………………
Correct : C. cost accounting department
64. Stock verification sheets are maintained to record the results of ……….
Correct : A. physical verification
65. Stock Adjustment Account is debited with ……….and credited with ………..
Correct : B. shortage of stock, surplus
66. Bin card is a record of.................. only.
Correct : C. quantity
67. Bin card is maintained by the…………….
Correct : C. storekeeper
68. Material abstract is also known as ………………
Correct : A. material issue analysis sheet
69. Material should be issued by the store keeper against……………….
Correct : C. both a & b
70. First in first out method of valuing material issues is suitable in times
of…………
Correct : B. falling prices
71. Last in first out method is suitable in times of………………
Correct : A. rising prices
72. Average cost method of valuing material issues is suitable
when………….
Correct : C. prices fluctuate considerably
73. Inflated price method of valuing material issues is suitable
when…………
Correct : A. materials are subject to natural wastage
74. Specific price method of valuing material issue is used when………….
Correct : A. materials are purchased for specific job or work order
75. Market price method is considered to be the best method
when…………..
Correct : A. quotations have to be sent
76. A bill of material serves the purpose of…………………
Correct : A. material requisition
77. A bill of material is prepared in case of a................................. job
Correct : B. non-standardized job
78. Stock verification sheets are maintained to record the results of………
Correct : A. physical verification
79. The quantity of material to be ordered at one time is known as…………
Correct : A. ordering quantity
80. ……….represents that quantity of material which is normally ordered when a
particular material reaches reordering level.
Correct : D. re-order quantity
81. The principle types of inventories are raw materials and ,…............and
finished goods
Correct : B. goods-in-progress
82. Re-ordering level = Maximum consumption x …………………………
Correct : C. maximum re-order period
83. Inventory turnover ratio = Cost of inventory consumed during theperiod ÷ Cost of ....................................................held during the period
Correct : A. average inventory
84. Inventory turnover in days = Days during the period ÷………………..
Correct : A. inventory turnover ratio
85. ………is a technique of material cost control which leads to low carrying cost as a
result of low investment in inventory
Correct : B. jit inventory system
86. ………………is a technique of stock control which leads to saving of time of the management because attention is required to be paid only to some
of the items rather than on all the items.
Correct : A. abc analysis
87. ……………….is used primarily for control of spare parts.
Correct : C. ved analysis
88. Inventory turnover ratio = Cost of …………………..during the period ÷
Cost of average inventory held during the period.
Correct : A. inventory consumed
89. Re-ordering level = ........................................X Maximum re-order period
Correct : C. maximum consumption
90. ……………….obviates the necessity for the physical checking of all items of stores
at the end of the year and thereby avoids dislocation ofproduction.
Correct : D. perpetual inventory system
91. ………………forms part of cost of production.
Correct : B. normal waste
92. …………does not form part of production.
Correct : A. abnormal waste
93. Material losses due to abnormal reasons should be transferred
to…………………
Correct : B. costing profit and loss account
94. Defectives are that portion of production which can be.............................at some
extra cost of re-operation.
Correct : B. rectified
95. Which among the following is not a management accounting technique.
Correct : D. none
96. Marginal costing is a …………… of costing
Correct : C. technique
97. .......................Under marginal costing, …………… costs are treated as period
costs and charged to profit and loss account for the period for which they are incured.
Correct : B. fixed cost
98. Under marginal costing, stocks of finished goods and work-in-process are valued at
…………….. costs only
Correct : C. marginal cost
99. ……….is the excess of sales over marginal cost of sales
Correct : D. contribution
100. ………..is the practice of charging all costs, both variable and fixed , to operations,
processes, or products.