Material Costing MCQs

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 12, 2023

Test your knowledge with this multiple choice question (MCQ) quiz on material costing. The quiz is helpful for students to clarify key concepts and prepare for exams or interviews. This quiz contains 14 MCQs. Each question has 4 options and you'll need to choose the 1 correct option. The results will be shown after you answer the questions and submit the quiz.
1. Which of the following is the correct valuation base for finished goods stock for balance sheet valuation purposes?
2. A perpetual inventory system is:
3. Which of the following does not usually appear on a GRN?
4. A purchase requisition is raised:
5. If raw materials prices are inflated, which of the following stock valuation methods will show the lowest gross profit?
6. Which of the following is a disadvantage of the FIFO method of stock valuation?
7. The re-ordering quantity that may be measured is:
8. Which of the following source documents in a cost accounting system is designed to exercise control over the delivery and accurate recording of receipts of goods?
9. A written request to a supplier for specified goods at an agreed on price is called a:
10. The total amount of the materials subsidiary ledger inventory cards must be equal to the amount in the following account:
11. Under a periodic inventory system, the purchase of materials is recorded in an account known as the:
12. Under a perpetual inventory system, the purchase of raw materials is recorded in an account named the:
13. Which of the following forms must be filled out when an inventory is to be removed from the materials inventory and placed into production?
14. A written request to a supplier for specified goods at an agreed on price is called a:

Material Costing MCQs FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.