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    67 Sy C1 Chap-5 MCQ

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    Rutuja Bhujbal
    This document contains 20 multiple choice questions about inventory control from a chapter in a cost and works accounting textbook. The questions cover topics like the objectives of inventory control, definitions of terms like waste and scrap, techniques for inventory control like ABC analysis and calculating inventory turnover ratios, and how ratios can help management understand inventory levels and risks. The questions are followed by the answers keyed to the questions. The document cites a reference textbook for cost and works accounting.

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    67 Sy C1 Chap-5 MCQ

    Uploaded by

    Rutuja Bhujbal
    19K views6 pages
    This document contains 20 multiple choice questions about inventory control from a chapter in a cost and works accounting textbook. The questions cover topics like the objectives of inventory control, definitions of terms like waste and scrap, techniques for inventory control like ABC analysis and calculating inventory turnover ratios, and how ratios can help management understand inventory levels and risks. The questions are followed by the answers keyed to the questions. The document cites a reference textbook for cost and works accounting.

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    67 SY C1 CHAP-5 MCQ (1)

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    This document contains 20 multiple choice questions about inventory control from a chapter in a cost and works accounting textbook. The questions cover topics like the objectives of inventory control, definitions of terms like waste and scrap, techniques for inventory control like ABC analysis and calculating inventory turnover ratios, and how ratios can help management understand inventory levels and risks. The questions are followed by the answers keyed to the questions. The document cites a reference textbook for cost and works accounting.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    19K views6 pages

    67 Sy C1 Chap-5 MCQ

    Uploaded by

    Rutuja Bhujbal
    This document contains 20 multiple choice questions about inventory control from a chapter in a cost and works accounting textbook. The questions cover topics like the objectives of inventory control, definitions of terms like waste and scrap, techniques for inventory control like ABC analysis and calculating inventory turnover ratios, and how ratios can help management understand inventory levels and risks. The questions are followed by the answers keyed to the questions. The document cites a reference textbook for cost and works accounting.

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    MCQ by Dr.S.R.Pagare, K.J.

    Somaiya College, Kopargaon [Document title]

    S.Y.B.Com
    COST AND WORKS ACCOUNTING
    PAPER I
    Chapter 5: Inventory Control
    Multiple Choice Questions
    (Fill in the blanks)

    1] Inventory Control is an important part of ________ management.


    A] Material
    B] Labour
    C] Expenditure

    2] A system which ensures the provision of the required quantity of inventories of the required
    quality at the required time with the minimum amount of capital is known as_______.
    A] Labour Control
    B] Inventory Control
    C] Costing

    3] To help ______ in taking inventory decisions is one of the objectives of inventory control.
    A] Workers
    B] Management
    C] Consumers

    4] __________ involves verifying the physical quantities of stores in hand.


    A] Pricing of Issues
    B] Material control
    C] Stock taking
    MCQ by Dr.S.R.Pagare, K.J.Somaiya College, Kopargaon [Document title]

    5] Stock taking is essential to know the correctness of the balances shown in bin cards and
    __________ accounts.
    A] Suspense
    B] Financial
    C] Store ledger

    6] Stock verification sheet is also known as _______ sheet.


    A] Inventory
    B] Evaluation
    C] Performance

    7] __________ inventory system is a method of recording stores balances at the time of each
    receipt and issue, to facilitate regular checking and stock taking.
    A] Continuous
    B] Periodic
    C] Perpetual

    8] _______ is the portion of raw material lost in processing, storage and handling having no
    recoverable value.
    A] Scrap
    B] Waste
    C] Spoilage

    9] ______ is the incidental residue from certain types of manufacture usually of low value
    recoverable without further processing.
    A] Spoilage
    B] Waste
    C] Scrap
    MCQ by Dr.S.R.Pagare, K.J.Somaiya College, Kopargaon [Document title]

    10] _______ is the result of various causes such as substandard materials, bad supervision, and
    carelessness in planning etc.
    A] Defective work
    B] Scrap
    C] Wastage

    11] ________ is defined as the materials which in the process of manufacture are badly damaged
    and beyond rectification and thus the goods ought to be disposed off as seconds.
    A] Wastage
    B] Spoilage
    C] Scrap

    12] ABC analysis is an important _________ of inventory control.


    A] Process
    B] Method
    C] Technique

    13] ABC analysis is a technique of material control according to _______.


    A] Number
    B] Value
    C] Quality

    14] Inventory turnover is a ______ of the value of materials consumed during a period to the
    average value of inventory during the period.
    A] Percentage
    B] Ratio
    C] Index
    MCQ by Dr.S.R.Pagare, K.J.Somaiya College, Kopargaon [Document title]

    15] _____________ helps the management to know the fast and slow moving material in stock.
    A] Inventory ratio
    B] Stock levels
    C] Pricing of issues

    16] A higher inventory turnover ratio indicates that the material item is ________ moving.
    A] Non-moving
    B] Slow
    C] Fast

    17] A high turnover ratio means _____ risk of pilferage.


    A] Lower
    B] Higher
    C] Constant

    18] Material Turnover Ratio is computed by dividing ________ with the average stock.
    A] Total cost
    B] Cost of material consumed
    C] Inventory ratio

    19] Cost of material consumed is computed by deducting closing stock from the total of opening
    stock and ________.
    A] Sales
    B] Purchases
    C] Consumables
    MCQ by Dr.S.R.Pagare, K.J.Somaiya College, Kopargaon [Document title]

    20] In ABC analysis the category ‘A’ includes items with small quantity but high ______.
    A] Weight
    B] Value
    C] Density
    ANSWERS:
    1] Material
    2] Inventory control
    3] Management
    4] Stock taking
    5] Store Ledger
    6] Inventory
    7] Perpetual
    8] Waste
    9] Scrap
    10] Defective work
    11] Spoilage
    12] Technique
    13] Value
    14] Ratio
    15] Inventory ratio
    16] Fast
    17] Lower
    18] Cost of material consumed
    19] Purchases
    20] Value

    Reference:
    Text book on Cost & Works Accounting by Dr.N.M.Nare & Prof.T.R.Thorat, Atharva Prakashan, Pune.
    MCQ by Dr.S.R.Pagare, K.J.Somaiya College, Kopargaon [Document title]

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