Material Costing Methods Q&A

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 12, 2023

1. What is a materials requisition form?

2. What is a bill of materials?

3. What journal entry is required when materials are issued from the store?

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

5. What are cost price methods?

6. Explain the first in, first out (FIFO) method of material costing.

7. What are three advantages of the FIFO method?

8. Define the last in, first out (LIFO) method of material costing.

9. What are three advantages of the LIFO method?

10. What is the average cost method?

Material Costing Methods Q&A FAQs

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 or view his author profiles on Amazon, Nasdaq and Forbes.