Home > General Studies (Hindi) > Quizzes > Cost Accounting 101 Practice Test: Inventory Management, Just-in-Time, and Simplified Costing Methods
Cost Accounting 101 Practice Test: Inventory Management, Just-in-Time, and Simplified Costing Methods
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 0% • Most missed: “The 'flush' in backflush refers to the fact that there are no variances in a bac…”
Inventory management is the process of ordering, storing, using, and selling a company's inventory. Just-in-time (JIT) is an inventory management method that involves receiving goods from suppliers only as they are needed.  Here are some inventory costing methods: First In, First Out (FIFO): Companies sell the inventory first that they bought first. Last In, First Out (LIFO): Companies sell the inventory first that they bought last. Weighted Average Cost (WAC) Specific Identification  JIT's main objective is to reduce inventory holding costs and increase inventory turnover. It requires... Show more
Cost Accounting 101 Practice Test: Inventory Management, Just-in-Time, and Simplified Costing Methods
Time left 00:00
25 Questions

1. When using a vendor-managed inventory system to enhance the features of supply chain management, a challenging issue is:
2. The opportunity cost of the stockout includes lost contribution margin on the sale NOT made plus any contribution margin lost on future sales due to customer ill will.
3. A conflict between the EOQ model's optimal order quantity and the order quantity the purchasing manager, evaluated on conventional accounting numbers, regards as optimal is considered a(n):
4. The 'flush' in backflush refers to the fact that there are no variances in a backflush costing system using standard costs.
5. Which of the following industries would have the highest cost of goods sold percentage relative to sales?
6. Companies that have fast manufacturing lead times usually find that a version of backflush costing will report cost numbers similar to what a sequential costing approach would report.
7. The management accountant aids in MRP by:
8. A positive aspect of backflush costing is the presence of the visible audit trail.
9. Relevant total costs in the economic-order-quantity decision model equal relevant ordering costs plus relevant:
10. Purchasing costs arise in preparing and issuing purchase orders, receiving and inspecting the items included in the orders, and matching invoices received, purchase orders, and delivery records to make payments.
11. A grouping of all the different types of equipment used to make a given product is referred to as:
12. What are the major relevant costs in maintaining safety stock?
13. A costing system that omits recording some or all of the journal entries relating to the cycle from purchase of direct materials to the sale of finished goods is called:
14. The ________ describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers.
15. The simplest version of the Economic Order Quantity model incorporates only ordering costs, carrying costs, and purchasing costs into the calculation.
16. Just-in-time systems are similar to materials requirement planning systems in that both systems are demand-pull systems.
17. A 'push-through' system, often described as a just-in-time system, emphasizes simplicity and close coordination among work centers.
18. A firm using a backflush costing system will always use actual costs rather than standard costs.
19. A 'demand-pull' system, often described as a materials requirement planning system, focuses first on the forecasted amount and timing of finished goods and then determines the demand for materials components and subassemblies at each of the prior stages of production.
20. The EOQ model is solved using calculus but the key intuition is that relevant total costs are minimized when relevant ordering costs equal relevant carrying costs.
21. In a just-in-time system, suppliers are selected primarily on the basis of their ability to provide materials and products at the lowest possible price.
22. The annual relevant total costs are at a minimum when relevant:
23. Lean accounting:
24. One DISADVANTAGE of an enterprise resource planning (ERP) system is:
25. To determine the Economic Order Quantity, the relevant ordering costs are maximized and the relevant carrying costs are minimized.

⚡ Recently practiced quizzes in this topic
Live quiz activity
Objective GS (General Studies) in हिन्दी - Indian States & The Company Rajasthan GK Hindi - Fairs & Festivals Objective GS (General Studies) in हिन्दी - Indian Polity - Historical Background of Constitution Objective GS (General Studies) in हिन्दी - Indian Polity - Judiciary Rajasthan GK Hindi - Culture Objective GS in Hindi - General Geography - Air Pressure, Humidity & Air Movement Rajasthan GK Hindi - Energy Rajasthan GK Hindi - Tourism Rajasthan GK Hindi - Rajasthan Introduction Rajasthan GK Hindi - Rivers & Lakes
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.