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Cost Accounting

K. Alex

Chapter 4

Material Control/Inventory Control - all with Video Answers

Educators

Chapter Questions

Problem 1

State whether the following statements are true or false:
Continuous stock taking should not be resorted to since it results in the disruption of work.

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01:47

Problem 1

Choose the correct answer:
Under $\mathrm{ABC}$ analysis, $\mathrm{A}$ stands for
(a) Low-value item
(b) Minimum-value item
(c) High-value item
(d) None of the above

Mir Afzal
Mir Afzal
Numerade Educator
00:38

Problem 2

State whether the following statements are true or false:
ABC analysis concentrates more on important items.

Tanishq Gupta
Tanishq Gupta
Numerade Educator

Problem 2

Choose the correct answer:
Stock verification sheets are maintained to record the results of
(a) Annual consumption
(b) Physical verification
(c) Both a and b
(d) None of the above

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00:59

Problem 3

State whether the following statements are true or false:
The terms material and inventory should not be used synonymously.

Sanchit Gogia
Sanchit Gogia
Numerade Educator
03:27

Problem 3

Choose the correct answer:
Formula for average stock level
(a) Minimum + maximum level/2
(b) Minimum level $+1 / 2$ of ROQ or EOQ
(c) Both a and b

David Dishman
David Dishman
Numerade Educator
00:59

Problem 4

State whether the following statements are true or false:
EOQ is a reorder quantity.

Sanchit Gogia
Sanchit Gogia
Numerade Educator

Problem 4

Choose the correct answer:
Reorder level $=$ safety stock +
(a) Short time consumption
(b) Lead time consumption
(c) Average consumption
(d) None of the above

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01:31

Problem 5

State whether the following statements are true or false:
When maximum stock level is fixed, the stock at hand should never exceed this level.

Samuel Hannah
Samuel Hannah
Numerade Educator
04:27

Problem 5

Choose the correct answer:
analysis is used mainly for the control of spare parts
(a) VED analysis
(b) JT analysis
(c) Periodic inventory system
(d) Perpetual inventory system

Puneet Prajapati
Puneet Prajapati
Numerade Educator
00:40

Problem 6

State whether the following statements are true or false:
Perpetual inventory system means a continuous stocktaking system.

AG
Ankit Gupta
Numerade Educator
04:27

Problem 6

Choose the correct answer:
Timely deliveries have special significance in
(a) VED analysis
(b) JT analysis
(c) Periodic inventory system
(d) Perpetual inventory system

Puneet Prajapati
Puneet Prajapati
Numerade Educator
00:40

Problem 7

State whether the following statements are true or false:
Under $\mathrm{ABC}$ analysis, $\mathrm{A}$ stands for high-value items.

Tanishq Gupta
Tanishq Gupta
Numerade Educator
01:12

Problem 7

Choose the correct answer:
If the quality of materials purchased is too low, the product will be of
(a) Superior quality
(b) Inferior quality
(c) Both $\mathrm{a}$ and $\mathrm{b}$
(d) None of the above

Dave Kratz
Dave Kratz
Numerade Educator

Problem 8

State whether the following statements are true or false:
There are two aspects, namely, accounting aspect and operational aspect, of material control.

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Problem 8

Choose the correct answer:
Higher cost of finished product would make the product
(a) Competitive
(b) Uncompetitive
(c) Comparative
(d) None of the above

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Problem 9

State whether the following statements are true or false:
Stock verification sheets are maintained to record the results of physical verification.

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Problem 9

Choose the correct answer:
Physical inventory is usually taken near
(a) Beginning of the accounting period
(b) End of the accounting period
(c) Middle of the accounting period
(d) None of the above

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Problem 10

State whether the following statements are true or false:
Material control covers three stages, namely, purchasing, storing and issuing.

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Problem 10

Choose the correct answer:
The cost of goods sold is computed by deducting
(a) Opening inventory
(b) Closing inventory
(c) Both a and b
(d) None of the above

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