快速查题-ACCA英国注册会计师试题

Which method of inventory valuation is being described?

Characteristic                                                                                       FIFO                LIFO                   AVCO

Potentially out of date valuation on issues.   

The valuation of inventory rarely reflects the actual

purchase price of the material.   

Potentially out of date closing inventory valuation.   

This inventory valuation method is particularly suited

to inventory that consist of liquid materials e.g. oil.   

This inventory valuation method is particularly suited

to inventory that has a short shelf life e.g. dairy products.   

This inventory valuation method is suited to a wheat farmer

who has large silos of grain. Grain is added to and taken from

the top of these silos.   

In times of rising prices this method will give higher profits.   

In times of rising prices this method will give lower profits.   

In times of rising prices this method gives a middle level of

profits compared to the other two.   

Issues are valued at the most recent purchase cost.  

Inventory is valued at the average of the cost of purchases.   

Inventory is valued at the most recent purchase cost.   

The purchase price of an inventory item is $42 per unit. In each three-month period the usage of the item is 2,000 units. The annual holding costs associated with one unit is 5% of its purchase price. The EOQ is 185 units.

What is the cost of placing an order (to 2 decimal places)?

                  $   O

Are the following statements true or false?

Statement                                                                                                 True                  False

In periods of rising prices, FIFO gives a higher valuation of

closing inventory than LIFO or AVCO.  

In periods of falling prices, LIFO gives a higher valuation of

issues of inventory than FIFO or AVCO.  

AVCO would normally be expected to produce a valuation of

closing inventory somewhere between valuations FIFO and LIFO.  

FIFO costs issues of inventory at the most recent purchase price.  

AVCO costs issues of inventory at the oldest purchase price.  

LIFO costs issues of inventory at the oldest purchase price.  

FIFO values closing inventory at the most recent purchase price.  

LIFO values closing inventory at the most recent purchase price.  

AVCO values closing inventory at the latest purchase price.  

Which TWO of the following are included in the cost of holding inventory?

Which of the following is in the correct chronological sequence for purchase documents?

Which of the following describes a purchase order?

When charging direct material cost to a job or process^ the details would be taken from which document?

The following relate to the management of raw materials:(i) Holding costs per unit of inventory would increase(ii) The economic order quantity would decrease(iii) Average inventory levels would increase(iv) Total ordering costs would decreaseWhich of the above would result from the introduction of buffer (safety) inventory?

Which of the following is least relevant to the simple economic order quantity model for inventory?

The following documents are used in accounting for raw materials:(i) goods received note(ii) materials returned note(iii) materials requisition note(iv) delivery noteWhich of the documents may be used to record raw materials sent back to stores from production?