MBA Cost Accounting MCQs - Chapter 21

Inventory Management, Just in Time and Costing Methods Multiple Choice Questions (MCQ) PDF - 4

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Inventory Management, Just in Time & Costing Methods Questions & Answers PDF Download: MCQ Quiz 4

MCQ 16: An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate

A) annual irrelevant ordering costs

B) annual relevant carrying costs

C) annual relevant ordering costs

D) annual irrelevant carrying costs

MCQ 17: A push through system, according to which goods are manufactured for finished inventory solely, on the basis of forecasted demand can be classified as

A) in-time production

B) materials requirement planning

C) on-time production

D) pull strategy of production

MCQ 18: The relevant incremental costs are added into the relevant opportunity cost of capital to calculate

A) purchase order costs

B) relevant inventory carrying costs

C) irrelevant inventory carrying costs

D) relevant ordering costs

MCQ 19: If the economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units, then number of deliveries in a year will be

A) 16

B) 12

C) 10

D) 14

MCQ 20: The number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate

A) annual irrelevant ordering costs

B) annual relevant carrying costs

C) annual relevant ordering costs

D) annual irrelevant carrying costs

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