CMA I - Material Costing

When new material is purchased, which column is it recorded in?

• Receipts

• Issue

• Balance

• Closing balance

________shows stock position at the bin.

• EOQ

• ABC

• Bin Card

• None of the above

_______is decided on the basis of ordering cost and carrying cost.

• EOQ

• Maximum Stock Level

• Minimum Stock Level

• Average Stock Level

Purchase order is a ______.

• Request to the supplier to supply materials

• Request to the supplier to verify the stock

• Acknowledgement of goods

• Sales invoice

________shows movement of each item of material.

• Stores ledger

• Delivery material

• Supplier ledger

• None of the above

Under _________ stock is verified continuously.

• ABC Analysis

• Periodic Inventory System

• Perpetual Inventory System

• None of the above

Under rising prices pricing of material issued at latest price under_______.

• FIFO

• LIFO

• Weighted Average

• Simple Average

Inventory is valued at more recent prices under______.

• FIFO

• LIFO

• Best stock method

• Weighted Average

When prices are falling under FIFO, cost of production_______ and value of stock and profit _______,

• High, Lower

• High, High

• Lower, High

• Constant, High

'Buffer stock' is the level of stock

• Half of the actual stock

• At which the ordering process should start

• Minimum stock level below which actual stock should not fall

• Maximum stock in inventory