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MCQs

Total Questions : 163 | Page 7 of 17 pages
Question 61. The costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as
  1.    stock-out costs
  2.    ordering costs
  3.    carrying costs
  4.    purchasing costs
 Discuss Question
Answer: Option B. -> ordering costs
Answer: (b).ordering costs
Question 62. The purchase order lead time is multiplied to the number of units sold per unit of time, to calculate
  1.    carrying costs
  2.    relevant total costs
  3.    economic order quantity
  4.    reorder point
 Discuss Question
Answer: Option D. -> reorder point
Answer: (d).reorder point
Question 63. The reorder point is divided by number of sold units for per unit of time to calculate
  1.    relevant carrying cost
  2.    relevant ordering cost
  3.    purchase order lease time
  4.    number of purchase orders
 Discuss Question
Answer: Option C. -> purchase order lease time
Answer: (c).purchase order lease time
Question 64. Buying of goods or materials for production in a way that they are delivered directly on the manufacturing facility of company is called
  1.    economic order quantity purchasing
  2.    annual purchasing
  3.    just in time purchasing
  4.    both a and b
 Discuss Question
Answer: Option C. -> just in time purchasing
Answer: (c).just in time purchasing
Question 65. The relevant ordering costs are added into relevant carrying costs to calculate
  1.    relevant total costs
  2.    contribution costs
  3.    throughput costs
  4.    optimized costs
 Discuss Question
Answer: Option A. -> relevant total costs
Answer: (a).relevant total costs
Question 66. The broad's average use to assign the cost of revenue to cost objects will be classified as
  1.    refined costing system
  2.    refined selling system
  3.    undefined costing
  4.    defined selling system
 Discuss Question
Answer: Option A. -> refined costing system
Answer: (a).refined costing system
Question 67. The costs of all the activities for a group of products, rather than individual product can be classified as
  1.    activity level costs
  2.    input level costs
  3.    batch level costs
  4.    output level costs
 Discuss Question
Answer: Option C. -> batch level costs
Answer: (c).batch level costs
Question 68. The product which requires low amount of resources, but incur high per unit cost is classified as
  1.    expected under cost
  2.    expected over cost
  3.    product under costing
  4.    product over costing
 Discuss Question
Answer: Option D. -> product over costing
Answer: (d).product over costing
Question 69. The factors that accelerate the process of refining a costing system include
  1.    increase in product diversity
  2.    increase in indirect costs
  3.    product market competitions
  4.    all of above
 Discuss Question
Answer: Option D. -> all of above
Answer: (d).all of above
Question 70. In activity based costing system, the description of activity can be classified as
  1.    activity list
  2.    activity dictionary
  3.    active purpose
  4.    both a and b
 Discuss Question
Answer: Option D. -> both a and b
Answer: (d).both a and b

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