The decision model to calculate optimal quantity of inventory to be ordered is called ____________?
A. efficient order quantity B. economic order quantity C. rational order quantity D. optimized order quantity
Accounting MCQs with Answers
Buying of goods or materials for production in a way that they are delivered directly on the manufacturing facility of company is called ____________?
A. economic order quantity purchasing B. annual purchasing C. just in time purchasing D. both a and b
The costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as _____________?
A. stock-out costs B. ordering costs C. carrying costs D. purchasing costs
If the purchase order lead time is 35 minutes and number of units sold per time is 400 units, then reorder point will be ____________?
A. 14000 units B. 14500 units C. 15000 units D. 15500 units
The method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as __________?
A. economic accounting B. back-flush accounting C. lean accounting D. lead accounting
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
The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as ____________?
A. relevant purchase order costs B. relevant inventory carrying costs C. irrelevant inventory carrying costs D. relevant opportunity cost of capital
The costs of goods acquired from suppliers are classified as ___________?
A. stock-out costs B. ordering costs C. carrying costs D. purchasing costs