Costing - Practice Test | ExamPrepSheets

[#1001] Material is issued by store keeper against ________.

(A) material requisition

(B) material order

(C) goods received note

(D) purchase requisition

Correct Answer

(A) material requisition

[#1002] EOQ stands for ________.

(A) Economic Order Quantity

(B) Essential Order Quantity

(C) Economic Output Quantity

(D) Essential Output Quantity

Correct Answer

(A) Economic Order Quantity

Explanation

Solution: Economic order quantity (EOQ) is the ideal order quantity a company should purchase for its inventory given a set cost of production, a certain demand rate, and other variables.

[#1003] If the current ratio is 2 : 1 and working capital is Rs. 60,000. What is the value of the current assets?

(A) Rs. 60,000

(B) Rs. 1,00,000

(C) Rs. 1,20,000

(D) Rs. 1,80,000

Correct Answer

(C) Rs. 1,20,000

[#1004] The appropriate ratio for indicating liquidity crisis is

(A) Operating ratio

(B) Sales turnover ratio

(C) Current ratio

(D) Acid test ratio

Correct Answer

(D) Acid test ratio

[#1005] Cost plus contract is useful for-

(A) Contractor

(B) Contractee

(C) Both A and B

(D) None of these

Correct Answer

(C) Both A and B

Costing - Study Mode

[#1001] Material is issued by store keeper against ________.

Correct Answer

[#1002] EOQ stands for ________.

Correct Answer

Explanation

[#1003] If the current ratio is 2 : 1 and working capital is Rs. 60,000. What is the value of the current assets?

Correct Answer

[#1004] The appropriate ratio for indicating liquidity crisis is

Correct Answer

[#1005] Cost plus contract is useful for-

Correct Answer