Cost Classification Quiz

Classification of cost is useful to

• Find gross profit

• Find net profit

• To identify costs

• None of these

Elements of costs are

• Three types

• Two types

• Four types

• Five types

Direct expenses are also called

• Major expenses

• Sundry expenses

• Over head expenses

• Chargeable expenses

Tender is an

• Estimation of cost only

• Estimation of Profit only

• Estimation of selling price

• None of these

Cost of sales plus profit is

• Selling price

• Value of finished goods

• Value of goods produced

• Value of stocks

material cost involves

• Consumption of materials

• Issue of materials

• Purchase of materials

• Purchase, Storage and issue of materials

Material requisition is meant for

• Purchase of materials

• Supply of materials from stores

• Sale of materials

• None of the above

ABC analysis is

• Always better control

• Advantage of better control

• At best control

• None of the above

FIFO is

• Fast investment in future orders

• First In First Out

• Fast Issue of First Orders

• None of these

LIFO Method of pricing of material issues is more suitable when

• Material prices are rising

• Material prices are falling

• Material prices are fluctuating

• Material prices are unchanging