Accounting MCQs

1590 MCQs  (Page 77 of 159)

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If the purchase order lead time is 35 minutes and number of units sold per time is 400 units, then reorder point will be ____________?
A. 14000 units
B. 14500 units
C. 15000 units
D. 15500 units
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The costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as _____________?
A. Stock-out costs
B. Ordering costs
C. Carrying costs
D. Purchasing costs
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Buying of goods or materials for production in a way that they are delivered directly on the manufacturing facility of company is called ____________?
A. Economic order quantity purchasing
B. Annual purchasing
C. Just in time purchasing
D. Both a and b
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If the required rate of return is 12% and the per unit cost of units purchased is $35, then the relevant opportunity cost of capital will be ____________?
A. $6.20
B. $7.20
C. $4.20
D. $5.20
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If the economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units, then number of deliveries in a year will be ____________?
A. 16
B. 12
C. 10
D. 14
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The decision model to calculate optimal quantity of inventory to be ordered is called ____________?
A. Efficient order quantity
B. Economic order quantity
C. Rational order quantity
D. Optimized order quantity
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A push through system, according to which goods are manufactured for finished inventory solely, on the basis of forecasted demand can be classified as ___________?
A. In-time production
B. Materials requirement planning
C. On-time production
D. Pull strategy of production
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An example of shrinkage costs is _____________?
A. Incoming freight
B. Storage costs
C. Insurance
D. Clerical errors
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The costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as ___________?
A. Carrying costs
B. Purchasing costs
C. Stock-out costs
D. Ordering costs
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If the relevant opportunity cost of capital is $2950 and the relevant carrying cost of inventory is $6700, then the relevant incremental cost will be _____________?
A. $9,650
B. $2,350
C. $3,750
D. $2,750
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Word of the Day
17 Jul
Flagrant
(of an action considered wrong or immoral) conspicuously or obviously offensive.
انتہائی برا، قابل مذمت، فاش

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