Which of the following document evidences the transaction of purchase of material?
- A) Material requisition
- B) Store requisition
- C) Purchase order
- D) Purchase invoice
The cost that is subject to actual payment or will be paid for in future is called:
- A) Fixed cost
- B) Step cost
- C) Explicit cost
- D) Imputed cost
FIFO is the abbreviation of:
- A) Final Interest-Free Option
- B) First in First out Method
- C) None of the given options
- D) Fixed income Financial Operations
Which of the following industries would most likely use a Process cost Accounting system?
- A) Construction
- B) Beer
- C) Hospitality
- D) Consulting
Which of the following is the best description of zero-base budgeting?
- A) Zero-base budgeting is a technique applied in government budgeting in order to have a neutral effect on policy issues
- B) Zero-base budgeting requires a completely clean sheet of paper every year, on which each part of the organization must justify the budget it requires
- C) Zero-base budgeting starts with the figures of the previous period and assumes a zero rate of change
- D) Zero based budgeting is an alternative name of flexible budget
The point at which the cost line intersects the sales line will be called:
- A) Budgeted sales
- B) Break Even sales
- C) Margin of safety
- D) Contribution margin
A store ledger card is similar to the .
- A) Stock ledger
- B) Material card
- C) Purchase requisition card
- D) Bin card
___________is the cost that is incurred at the time of making transaction.
- A) Product Cost
- B) Period Cost
- C) Sunk Cost
- D) Historical Cost
The FIFO inventory costing method (when using a perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways?
- A) First to be allocated to the ending inventory
- B) Last to be allocated to the cost of goods sold
- C) Last to be allocated to the ending inventory
- D) First to be allocated to the cost of good sold
What will be the impact of normal loss on the overall per unit cost?
- A) Per unit cost will increase
- B) Per unit cost will decrease
- C) Per unit cost remain unchanged
- D) Normal loss has no relation to unit cost