Accounting Mcqs Practice Test

Question 1

The activities related to coordinating, controlling and planning flow of inventory are classified as ___________?

Accepted Answer

C. inventory management

Question 2

The costs of goods acquired from suppliers are classified as ___________?

Accepted Answer

D. purchasing costs

Question 3

The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as ____________?

Accepted Answer

D. relevant opportunity cost of capital

Question 4

If the relevant incremental costs are $5000 and the relevant opportunity cost of invested capital is $2500, then the relevant inventory carrying costs would be ____________?

Accepted Answer

A. $7,500

Question 5

The number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate _____________?

Accepted Answer

C. annual relevant ordering costs

Question 6

The method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as __________?

Accepted Answer

C. lean accounting

Question 7

If the purchase order lead time is 35 minutes and number of units sold per time is 400 units, then reorder point will be ____________?

Accepted Answer

A. 14000 units

Question 8

The costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as _____________?

Accepted Answer

B. ordering costs

Question 9

Buying of goods or materials for production in a way that they are delivered directly on the manufacturing facility of company is called ____________?

Accepted Answer

C. just in time purchasing

Question 10

If the required rate of return is 12% and the per unit cost of units purchased is $35, then the relevant opportunity cost of capital will be ____________?

Accepted Answer

C. $4.20

Question 11

The decision model to calculate optimal quantity of inventory to be ordered is called ____________?

Accepted Answer

B. economic order quantity

Question 12

If the economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units, then number of deliveries in a year will be ____________?

Accepted Answer

C. 10

Question 13

A push through system, according to which goods are manufactured for finished inventory solely, on the basis of forecasted demand can be classified as ___________?

Accepted Answer

B. materials requirement planning

Question 14

An example of shrinkage costs is _____________?

Accepted Answer

D. clerical errors

Question 15

If the relevant opportunity cost of capital is $2950 and the relevant carrying cost of inventory is $6700, then the relevant incremental cost will be _____________?

Accepted Answer

C. $3,750

Question 16

The costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as ___________?

Accepted Answer

A. carrying costs

Question 17

An ability of an accounting system, to point out the use of resources in every step of production process is called ___________?

Accepted Answer

B. audit trails

Question 18

If the cost per unit is $70 and the total number of units manufactured in company are 6000, then the total manufacturing cost would be _____________?

Accepted Answer

D. $420,000

Question 19

If the total manufacturing cost is $40000 and the total units manufactured is 500 units, then the per unit cost would be __________?

Accepted Answer

A. $80

Question 20

If the cost per unit is $50 and the total number of units manufactured in company are 5000, then the total manufacturing cost will be __________?

Accepted Answer

C. $250,000