Material Costing MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on November 16, 2021

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.

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

2. A perpetual inventory system is:

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

4. A purchase requisition is raised:

5. If raw materials prices are inflated, which of the following stock valuation methods will show the lowest gross profit?

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

7. The re-ordering quantity that may be measured is:

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

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

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

11. Under a periodic inventory system, the purchase of materials is recorded in an account known as the:

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

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

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


 

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®), 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, his interview on CBS, 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.

    Reply
    • Glad you found the material helpful. Let us know what specific kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!

      Reply

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