Material Costing Methods – Q & A

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on August 14, 2021

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.

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 contributes to his own finance dictionary, 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.

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