Material Costing MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on July 22, 2022

Test your knowledge with this multiple choice question (MCQ) quiz on material costing. The quiz is helpful for students to clarify key concepts and prepare for exams or interviews.

This quiz contains 14 MCQs. Each question has 4 options and you’ll need to choose the 1 correct option. The results will be shown after you answer the questions and submit the quiz.

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Frequently Asked Questions

Why purchase requisition is raised?

Purchase requisitions are used when a procurement staff needs to make a purchase or an order request on behalf of their organization. It is a request raised to inform department managers or the purchasing officer of the decision so that the procurement department can start the buying process.

How do you calculate the Direct Material Cost?

The cost of material used at the basic input in a process of production of any good is known as the Material Cost. Material Cost is bifurcated as direct Material Cost and indirect Material Cost.

How do you calculate the Direct Material Cost?

How do you calculate the Direct Material Cost?

What are examples of Material Cost?

They include things like rags used in constructing a house, thread used to stitch clothing together, and the lubricants or oil used on the machines that create the products or services.

What are the uses of Material Costing?

Material costs constitute a significant proportion of the overall cost of a product and should be kept within reasonable parameters. By utilizing scientific purchasing strategies, manufacturers can obtain materials at reasonable prices. By observing proper storage and conservation measures, manufacturers can reduce losses due to spoilage, thereby keeping cost content under control and leading to the production of high-quality products at reasonable cost.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

6 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?
    LIFO
    FIFO
    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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