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Accounting Mcqs – MCQs
1591 questions. Click to practice.
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1.
Which category encompasses tasks involving the coordination, control, and planning of inventory movement?
management of decision processes
management of production flow
management of inventory
management of manufacturing operations
2.
How are the expenses related to items bought from vendors categorized?
Costs due to inventory shortages
Expenses for placing orders
Costs associated with storing inventory
Costs incurred from purchasing goods
Transportation expenses
3.
What term describes the profit lost when capital is tied up in inventory instead of being invested elsewhere?
applicable expenses for purchase orders
applicable costs associated with holding inventory
non-applicable costs related to carrying inventory
applicable opportunity cost of invested capital
4.
Given that the incremental costs amount to $5,000 and the opportunity cost of invested capital is $2,500, what is the total relevant inventory carrying cost?
$7,500
$7,000
$6,500
$6,000
5.
To determine ____________, the quantity of purchase orders per year is multiplied by the associated ordering cost for each order.
yearly non-essential ordering expenses
yearly applicable holding expenses
yearly applicable ordering expenses
yearly non-essential holding expenses
6.
Which costing approach focuses on the entire value stream to generate customer value instead of concentrating on separate departments or individual products?
financial accounting
post-process accounting
lean accounting
forward accounting
activity-based accounting
7.
Given a purchase order lead time of 35 minutes and a sales rate of 400 units per minute, what is the reorder point?
14,000 units
14,500 units
15,000 units
15,500 units
16,000 units
8.
Which category includes expenses related to creating purchase orders, generating delivery records for payment tracking, and inspecting items?
Costs due to inventory shortages
Expenses associated with placing orders
Costs of holding inventory
Expenditures on procurement
None of the above
9.
What is the term for purchasing goods or materials so that they arrive exactly when needed at the company's production site?
purchasing based on economic order quantity
yearly procurement planning
just-in-time purchasing
a combination of economic order quantity and annual purchasing
10.
Given a required rate of return of 12% and a purchase cost of $35 per unit, what is the relevant opportunity cost of capital?
$6.20
$7.20
$4.20
$5.20
11.
What is the name of the decision model used to determine the ideal amount of inventory to order?
efficient ordering quantity
economic order quantity
logical ordering quantity
optimal ordering quantity
cost-effective order quantity
12.
Given that the economic order quantity (EOQ) for a year is 15,000 packages and the annual demand is 1,500 units, how many deliveries will be made in one year?
16 shipments
12 deliveries
10 orders
14 consignments
8 shipments
13.
Which production approach involves manufacturing goods exclusively for finished inventory based on predicted demand forecasts?
Just-in-time manufacturing
Materials Requirement Planning
On-demand production
Pull-based production strategy
Make-to-order production
14.
Which of the following is an example of shrinkage costs?
costs for inbound shipping
expenses related to warehousing
insurance premiums
errors made during clerical work
15.
Given that the opportunity cost of capital is $2,950 and the carrying cost of inventory is $6,700, what is the relevant incremental cost?
$9,650
$2,350
$3,750
$2,750
16.
Which type of costs include expenses related to holding finished products, such as spoilage, obsolescence, and insurance?
carrying costs
procurement costs
shortage costs
reordering costs
17.
What is the term for an accounting system's capability to track resource usage at each stage of the production process?
back-flush records
audit trails
trigger logs
lead manufacturing records
18.
Given that the cost to produce one unit is $70 and the company manufactures 6,000 units, what is the total manufacturing expense?
$240,000
$320,000
$210,000
$420,000
19.
Given that the total production cost amounts to $40,000 and the total output is 500 units, what is the cost incurred per unit?
$80
$65
$7
$35
20.
Given that each unit costs $50 to produce and the company manufactures 5,000 units, what is the total manufacturing expense?
$220,000
$232,000
$250,000
$25,000
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