1651. Which of the following items of cost should not be treated as direct material :

A. Electricity representing 90% of the total cost
B. Sand paper used in production
C. Thread used in stitching garments
D. All of the above *

1652. Continuous stock-taking is a part of :

A. Annual stock-taking
B. Perpetual inventory system *
C. ABC analysis
D. Periodic inventory system

1653. In the ABC analysis, items are categorized according to:

A. Investment value of materials
B. Consumption value of materials
C. Quantity of materials consumed
D. All of these *

1654. In which of the following methods, issues of materials are priced ata pre-determined rate ?

A. Inflated price method
B. Standard price method *
C. Replacement price method
D. Specific price method

1655. Materials are issued at the price that was in effect at the time of issue in which of the following methods?

A. Inflated price method
B. Standard price method
C. Replacement price method *
D. Specific price method

1656. When stock reaches: the storekeeper should initiate a purchase requisition.

A. Minimum level
B. Maximum level *
C. Re-order level
D. Average level

1657. Which of the accompanying material misfortunes ought to be moved to costing benefit and misfortune account ?

A. Loss by evaporation
B. Loss as a result of materials stored improperly *
C. Loss due to breaking the bulk
D. All of these

1658. The pricing strategy that produces absurd results when material prices fluctuate widely is:

A. Simple average price *
B. Weighted average price
C. Moving average price
D. Inflated price

1659. The method that will smooth out the effect of large fluctuations in prices is:

A. Simple average
B. Weighted average *
C. FIFO
D. LIFO

1660. In which of the following methods, the charge to production is at actual cost ?

A. Weighted average price
B. Standard price
C. Replacement price
D. FIFO *