Material Costing MCQs


Material Costing MCQs test will be helpful for the students to clear their concepts and to prepare themselves for the objective exam. This will also be helpful for individuals who are going to appear in an interview. Material Costing (MCQs) Multiple Choice Questions quiz consists of 14 questions. All questions have 4 multiple choice options from which students need to choose the correct one.

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1. Which of the following is the correct valuation base for finished goods stock for balance sheet valuation purpose?


2. A perpetual inventory system may be defined as:


3. Which of the following does not usually appear on a GRN?


4. A purchase requisition is raised:


6. Which of the following is a disadvantage of the FIFO method of stock valuation?


7. Re-ordering quantity may be measured is:


8. Which of the following source documents in a cost accounting system is designed to exercise control over the delivery of and accurate recording of the receipts of goods?


9. A written request to a supplier for specified goods at an agreed upon price is called a:


10. The total of the materials subsidiary ledger inventory cards must be equal to the amount in the following account:


12. Under a perpetual inventory system, the purchase of raw materials is recorded in an account entitled:


13. Which of the following forms must be filled out when an inventory is to be removed from the materials inventory to be placed into production?


14. A written request to a supplier for specified goods at an agreed upon price is called a:



4 thoughts on “Material Costing MCQs”

  1. If the raw materials prices are suffering from inflation, which of the following methods of valuing stocks will give the lowest gross profit?

    Replacement Cost
    Simple Average
    Given answer is LIFO , but I think Replacement Cost would be the most correct answer because inflation is increasing continuously and to get lowest profit current cost should be high which will be given by Replacement Cost rather than LIFO.


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