Inventory Management MCQ Questions Answers

For a bakery, flour would be considered _________________.

At which of the following levels are indirect costs added to inventory?

A predetermined estimate of what each item of manufactured inventory should cost, based on past experience and planned production methods, is called the __________________.

Which of the following is the valuation basis that departs from cost when the utility of the goods is no longer as great as their cost?

FIFO refers to the cost of the units sold. The parallel description for ending inventory is ____________.

Which of the following is a predetermined estimate of what each item of manufactured inventory should cost based on past cost and planned production methods?

Which of the following is NOT a valid characteristic of variable costing (direct costing) for inventories for manufacturing firms?

The ______________________ is the estimated selling price of the inventory less any estimated costs for making the item ready for sale and actually selling it.

Which of the following is a method for assigning cost in which a firm can physically match individual units sold with a specific purchase?

Which of the following concepts states that gains (or losses) caused by increases (or decreases) in the market value of assets should not appear in the income until a firm sells the particular assets?

At the beginning of the year, XYZ reported balances in Work in Process Inventory and Finished Goods Inventory, respectively, of $174,000 and $102,000. During the year, materials, labor, and overhead costs totaling $678,000 were added to the production. Products costing $612,000 were transferred to finished goods during the year. At the end of the year, the balance in Finished Goods Inventory is $72,000.

What is the ending balance in the Work in Process Inventory account?

The term "anticipation stock" refers to _____________________.

Which of the following is the correct sequence of cost flows for a manufacturing firm?

The procedure in which a manufacturing firm includes all production costs as a cost of the product is called _________________.

The term "economy of scale" refers to __________________.

Losses from inventory due to theft, evaporation, and waste are called ______________.
  

A stock of goods owned by a firm and held for sale to customers is called _____________.

For an auto manufacturer, steel would be considered ___________________.

The ________________ is the difference between the current replacement cost of the ending inventory and its acquisition cost.

it results in higher net income

The primary benefit of cycle counting is that __________________.
 

The term "inventory turnover" refers to ______________________.

Goods held for sale by a manufacturing concern are called _______________.

Which of the following terms sometimes denotes the realized holding gain on inventory?

The Work in Process account would not be debited for which of the following items?

Stored materials that will eventually become part of the goods to be produced are called _______.
  

The excess of FIFO or current cost over LIFO cost of inventories is called _________________.

Which of the following is NOT an example of distressed inventory?

The term "JIT Inventory" means _________________.

Which of the following is the contra account title used to record discounts for early payments for merchandise?

At the beginning of the year, XYZ reported balances in Work in Process Inventory and Finished Goods Inventory, respectively, of $174,000 and $102,000. During the year, materials, labor, and overhead costs totaling $678,000 were added to the production. Products costing $612,000 were transferred to finished goods during the year. At the end of the year, the balance in Finished Goods Inventory is $72,000.

What amount should XYZ report as Cost of Goods Sold for the year?

In cash flow statements, reductions in inventory ___________________.

Conventionally, accountants refer to the difference between sales and cost of goods sold as the ______________.