Under which method of inventory costing, a pre-determined cost is assigned to all items of inventory?

A Replacement cost method
B Standard cost method
C AVCO or average cost
D FIFO method

Correct Answer: Standard cost method

Under Standard cost method of inventory costing, a pre-determined cost is assigned to all items of inventory. A standard cost is described as a predetermined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or as the "should be" cost. Standard costs are often an integral part of a manufacturer's annual profit plan and operating budgets.
Bissoy MCQ
#Commerce #Accounting

Related Questions

Which one of the following methods of inventory costing produces ending stock cost close to the market value of the inventory?
A FIFO
B LIFO
C AVCO or averrage cost
D None of the above
Carlos Company had Beginning inventory of TA. 80,000, ending inventory of TA. 110,000 cost of goods sold of TA. 285,000 and sales of TK 475. 000 Carlos's days in inventory is:
A 73 days
B 102.5 days
C 121.7 days
D 84.5 days
Carlos Company had beginning inventory of TA, 80,000 ending inventory of TA. 110,000, cost of goods sold of TA. 285,000, and sales of TK. 475,000. Carlos's days in inventory is
A 72 days
B 102.5 days
C 121.7 days
D 84.5 days
একটি মজুত পণ্যের ক্রয়মূল্য ১৫,৫০০ টাকা ও বাজার মূল্য ১২,৫০০ টাকা, যা বছর শেষে মজুত পণ্যের গণনা থেকে বাদ পড়ে গেছে। এই মজুত পণ্যটি সঠিকভাবে হিসাবভুক্ত হলে ব্যবসার মুনাফার ওপর বিরূপ প্রভাব ফেলবে? (An inventory having cost price and market price of Tk. 15,500 and Tk. 12,500 respectively has been omitted while counting the inventory at the year end. What would be the effect on business profit, if this inventory is properly accounted for?)
A মুনাফা ১৫,৫০০ টাকা কমবে। (Decrease of profit by Tk. 15,500)
B মুনাফা ৩,০০০ টাকা কমবে। (Decrease of profit by Tk. 3,000)
C মুনাফা ৩,০০০ টাকা বাড়বে। (Increase of profit by Tk. 3,000)
D মুনাফা ১২,৫০০ টাকা বাড়বে। (Increase of profit by Tk. 12,500)
Costing system, which is a combination of process costing and job costing system is classified as
A weighted costing system
B average costing system
C hybrid costing system
D double costing system
A fruit salad is made by mixing 3 kgs of mango costing Tk 120 per kg and 2kgs of papaya costing Tk 100 per kg and 2 kgs of grapes costing Tk 140 per kg. At what price (in Taka) per kg should the mixture be sold to make a profit of 25 percent?
A 125
B 150
C 175
D None of these
A candy dealer makes up a mixture of 3 parts of candy costing him Tk. 60 per pound with 2 parts of candy costing him Tk. 70 per pound and 2 parts of candy costing him Tk. 50 per pound. At what price per pound should he sell his mixture to make a profit of 25 percent?
A Tk. 50
B Tk. 60
C Tk. 70
D Tk. 75
A computer performs operations by comparing data items and then, depending on the results, follows predetermined course of action. What are such operations called?
A Sequential
B Logical
C Digital
D Physical
E None of the above
If A is the total items consumed per year, P is the procurement cost per order, and C is the annual inventory carrying cost per item, then the most economic ordering quantity is given by
A $$\frac{{{\text{AP}}}}{{\text{C}}}$$
B $$\frac{{2{\text{AP}}}}{{\text{C}}}$$
C $$\sqrt {\frac{{2{\text{AP}}}}{{\text{C}}}} $$
D $${\left( {\frac{{{\text{AP}}}}{{\text{C}}}} \right)^2}$$
In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as
A partial inventory costing method
B current period inventory method
C Last-in, first-out method
D First-in, first-out method

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