Costing - Study Mode

[#186] Bin Card is a?
Correct Answer

(B) Quantitative record of material received, issued and balance

Explanation

Solution: Bin Card is a quantitative record of material received, issued and balance. A BIN Card is a table that records the status of a good held in stock.

[#187] Stores Ledger is a:
Correct Answer

(A) Quantitative as well as value wise records of material received, issued and balance

Explanation

Solution: Stores Ledger is a quantitative as well as value wise records of material received, issued and balance. A stores ledger is a manual or computer record of the raw materials and production supplies stored in a production facility. It is maintained by the person responsible for these assets, such as the warehouse manager.

[#188] Re-order level is calculated as:
Correct Answer

(A) Maximum consumption x Maximum re-order period

Explanation

Solution: Re-order level is calculated as Maximum consumption x Maximum re-order period. To calculate the reorder level, multiply the average daily usage rate by the lead time in days for an inventory item.

[#189] Economic order quantity is that quantity at which cost of holding and carrying inventory is:
Correct Answer

(B) Minimum and equal

Explanation

Solution: Economic order quantity is that quantity at which cost of holding and carrying inventory is minimum and equal. 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. This is done to minimize inventory holding costs and order-related costs.

[#190] Bad debt is an example of ________.
Correct Answer

(C) selling overhead

Explanation

Solution: Bad debt is an example of selling overhead. The expenses incurred by an organization in carrying out its selling activities.