Top 150+ Solved Cost and Management Accounting (CMA) MCQ Questions Answer
Q. A bill of material serves the purpose of…………………
a. material requisition
b. stores ledger
c. material issue analysis sheet
d. none of these
Q. A bill of material is prepared in case of a................................. job
a. standard job
b. non-standardized job
c. both a & b
d. none of these
Q. Stock verification sheets are maintained to record the results of………
a. physical verification
b. financial control
c. financial verification
d. quality verification
Q. The quantity of material to be ordered at one time is known as…………
a. ordering quantity
b. commercial order quantity
c. economic order quantity
d. none of these
Q. ……….represents that quantity of material which is normally ordered when aparticular material reaches reordering level.
a. maximum level
b. re-order level
c. minimum level
d. re-order quantity
Q. The principle types of inventories are raw materials and ,…............andfinished goods
a. processed materials
b. goods-in-progress
c. stored goods
d. goods for dispatch
Q. Re-ordering level = Maximum consumption x …………………………
a. average re-order period
b. maximum usage
c. maximum re-order period
d. normal usage
Q. Inventory turnover ratio = Cost of inventory consumed during theperiod ÷ Cost of ....................................................held during the period
a. average inventory
b. minimum inventory
c. maximum inventory
d. none of these
Q. Inventory turnover in days = Days during the period ÷………………..
a. inventory turnover ratio
b. material consumed during the period
c. cost of average stock during the period
d. none of these
Q. ………is a technique of material cost control which leads to low carrying cost as aresult of low investment in inventory
a. abc analysis
b. jit inventory system
c. ved analysis
d. perpetual inventory system
Q. ………………is a technique of stock control which leads to saving of time of the management because attention is required to be paid only to someof the items rather than on all the items.
a. abc analysis
b. jit inventory system
c. ved analysis
d. perpetual inventory system
Q. ……………….is used primarily for control of spare parts.
a. abc analysis
b. jit inventory system
c. ved analysis
d. perpetual inventory system
Q. Inventory turnover ratio = Cost of …………………..during the period ÷Cost of average inventory held during the period.
a. inventory consumed
b. minimum inventory
c. maximum inventory
d. none of these
Q. Re-ordering level = ........................................X Maximum re-order period
a. average re-order period
b. maximum usage
c. maximum consumption
d. normal usage
Q. ……………….obviates the necessity for the physical checking of all items of storesat the end of the year and thereby avoids dislocation ofproduction.
a. abc analysis
b. jit inventory system
c. ved analysis
d. perpetual inventory system