Cost Accounts Multiple Choice Questions with Answers – PDF Download

MCQ 1: If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then the annual relevant carrying cost will be:

1. $5,000
2. $4,500
3. $5,500
4. $6,000

MCQ 2: The costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as:

1. carrying costs
2. purchasing costs
3. stock-out costs
4. ordering costs

MCQ 3: The costs of goods acquired from suppliers are classified as:

1. stock-out costs
2. ordering costs
3. carrying costs
4. purchasing costs

MCQ 4: The costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as:

1. stock-out costs
2. ordering costs
3. carrying costs
4. purchasing costs

MCQ 5: The relevant ordering costs are added into relevant carrying costs to calculate:

1. relevant total costs
2. contribution costs
3. throughput costs
4. optimized costs