Which of the following cost is linked with the calculation of cost of inventories?

Which of the following cost is linked with the calculation of cost of inventories?

Product cost
Period cost
Both product and period cost
Historical cost

The type of process loss that should not affect the cost of inventories is

Seasonal loss                                                 

Normal loss

Abnormal loss                                   

Standard loss

In a job order cost system, indirect labor cost would be recorded as a debit of

Raw material                                                 

Work in process

Manufacturing overhead                             

Finished goods

The budget or scheduled that provides necessary input data for the direct material budget is the

Cash budget                                                   

Production budget                

Raw material purchase budget                     

Schedule of cash collections

Which method gives the lowest cost of materials and high cost of ending inventory and highest gross profit

LIFO                                                                

Average cost method

Specific identification                                    

FIFO

The decision model to calculate optimal quantity of inventory to be ordered is called

Efficient order quantity                                 

Rational order quantity         

Optimized order quantity                             

Economic order quantity

The most suitable costing system where the product differ in type of materials used

Process costing                                              

Job costing

Activity Base costing                                      

Absorption costing

A detailed plan showing how cash resources will be acquired and used over a specific time period.

Labor budget                                                 

Cash budget

Master budget                                                           

Continuous budget

When price fluctuate widely the method that will smooth out the effect of fluctuations is

LIFO                

FIFO    

Weighted average                

Simple average

Any cost that differs between alternatives in a decision making situation

Product cost                                                  

Opportunity cost

Differential cost                                            

Process costing

The cost of issuing purchase orders, making of delivery records for tracking payments and cost of inspection of items are classified as

Ordering costs                                               

Stock-out costs

Carrying costs                                    

Purchasing costs

Variable cost per unit includes

Varies when output varies

Increase when output increases

Remain constant

Decrease when output decreases

 Machine lubricant used on processing equipment in a manufacturing plant would be classified as a:

Period cost (manufacturing overhead)
Period cost (Selling, General & Admin)
Product cost (manufacturing overhead)
Product cost (Selling, General & Admin) 

An average cost is also known as: 

Variable cost
Unit cost
Total cost
Fixed cost

Finished goods inventory costs represent the costs of goods that are:

Currently being worked on
Waiting to be worked on 
Waiting to be sold
Already delivered to customers


 Which of the following is deducted from purchases in order to get the value of Net purchases?

Purchases returns
Carriage inward
Custom duty
All of the given options


Which of the following is correct?

Units sold= Opening finished goods units + Units produced – Closing finished goods units 
Units Sold = Units produced + Closing finished goods units - Opening finished goods units
Units sold = Sales + Average units of finished goods inventory
Units sold = Sales - Average units of finished goods inventory


In cost Accounting, normal loss is/are charged to:

Factory overhead control account
Work in process account
Income Statement 
All of the given options