Material costing methods – Q & A

1. Define material requisition.

2. Explain bill of materials.

3. What journal entry is required, when material is issued from store?

4. Write down the most important methods of pricing material issues.

5. Define the cost price methods.

6. Explain the FIFO method of material costing.

7. Write down the 3 advantages of FIFO method.

8. Define LIFO method of material costing.

9. State the 3 advantages of LIFO method.

10. Define the average cost method.

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