Economic Order Quantity (EOQ) is calculated to minimize: MCQ with Answer and Explanation

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Economic Order Quantity (EOQ) is calculated to minimize:

A. Total of ordering cost and inventory carrying cost

B. Material price variance

C. Selling costs

D. Factory rent

Answer: Option A

Solution (By JKSSB Mock Tests)

EOQ determines the optimal order size that perfectly balances and minimizes the costs of placing orders and holding inventory.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

In the absence of an agreement, what is the profit-sharing ratio among partners?

A. Capital Ratio

B. Time devoted to business

C. As decided by the senior partner

D. Equal

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Correct Answer: Option D

Explanation:
Under the Indian Partnership Act, 1932, if the deed is silent, all partners share profits and losses equally.

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Question #2

In a common size income statement, all items are expressed as a percentage of:

A. Total assets

B. Gross profit

C. Revenue from operations (net sales)

D. Net profit

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Correct Answer: Option C

Explanation:
Common size income statement base is net sales/revenue from operations.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

A petty cash voucher is authorized by:

A. The payee

B. The bank manager

C. The external auditor

D. The petty cashier or an authorized manager

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Correct Answer: Option D

Explanation:
For internal control, petty cash vouchers must be authorized by a responsible official before disbursement is made.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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