Accounting MCQs — Test 26
Page 1 of 3
Question 1
The cost of product failure, error prevention and appraisals can be classified under ___________?
Question 2
Which of the following is an example of purchasing costs?
Question 3
If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then the annual relevant carrying cost will be __________?
Question 4
If the demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then the economic order quantity will be ___________?
Question 5
The costs of goods acquired from suppliers are classified as ___________?
Question 6
The activities related to coordinating, controlling and planning flow of inventory are classified as ___________?
Question 7
The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as ____________?
Question 8
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 ____________?
Question 9
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 __________?
Question 10
The number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate _____________?