Material Management - 10
Select The Blank
Question Conformance to ________ is checked against component drawings.
Correct Answer Dimensions
Multiple Choice Single Answer
Question The inventories which refer to the maintenance, repair and operation supplies which are consumed during process of manufacturing but do not become part of the product is :-
Correct Answer MRO inventories
True/False
Question Import substitution in reality should be looked upon as "Import avoidance"
Correct Answer True
True/False
Question Deterioration & Obsolescence cost are similar.
Correct Answer False
Select The Blank
Question Customs duty is charged on the imported goods as per ________.
Correct Answer Customs tariff rules
Multiple Choice Multiple Answer
Question In a contract buyer has right to :-
Correct Answer Examine the goods , Reject the goods delivered in wrong quantity , Reject non conforming goods
Select The Blank
Question ________ of the department refers to the placement of the department in the structure of the company.
Correct Answer Status
True/False
Question Purchasing policies are implemented by framing procedures and rules.
Correct Answer True
True/False
Question Black bituminous paint should be applied to rubber parts.
Correct Answer False
Multiple Choice Single Answer
Question Pending purchases indent report :-
Correct Answer Highlights indents yet to be converted in to purchase-orders
Multiple Choice Multiple Answer
Question Correct issues must have :-
Correct Answer Written requisitions , Authorized requisitions
Multiple Choice Multiple Answer
Question The following are the actions would help to improve effectiveness of materials planning :-
Correct Answer Accurate forecasting , Computerization , Shorter materials plan period
Select The Blank
Question Systematic, formal and continuous analysis of all factors affect ________ management function is known as Materials research.
Correct Answer Materials
True/False
Question OEM discount is given by the supplier with a view to widen customer's base.
Correct Answer True
Multiple Choice Single Answer
Question A buyer gives wrong idea to his supplier about his requirements or show a fictitious figure to get some price discount is called as :-
Correct Answer Misrepresentation of facts
Multiple Choice Multiple Answer
Question Purchasing and procurement cost reduction is possible through :-
Correct Answer Blanket orders , Green purchasing , System contracting
Select The Blank
Question ________ department in almost all companies is the biggest spending department and the custodian of company's purse.
Correct Answer Purchasing
Select The Blank
Question ________ find their use in identification of raw materials, lubricants, pipelines etc.
Correct Answer Colour codes
Select The Blank
Question ________ is a complex combination of men, machines, materials and tools.
Correct Answer Manufacturing
Multiple Choice Single Answer
Question What is the meaning of storekeeping?
Correct Answer Physical storage of goods under custodianship in a systematic manner
True/False
Question Value analysis is the cost reduction technique.
Correct Answer True
Multiple Choice Single Answer
Question Competitive price information must be treated as confidential and should not be disclosed to the bidders with an intention of allowing them to rebid is :-
Correct Answer Improprieties of bids
Match The Following
Question Correct Answer
JE Journal Entries
PO Purchase order
GRN Goods receipt note
DN Discrepancy note.
Multiple Choice Single Answer
Question Traffic division is concerned with :-
Correct Answer Arrangement of eco. Transportation of incoming and outgoing materials
Multiple Choice Single Answer
Question Issue of stock is :-
Correct Answer Process of reacting by stores
True/False
Question Cancellation of orders on flimsy ground is unethical.
Correct Answer True
Select The Blank
Question Systematic ________of stores is the key to its efficient operation.
Correct Answer Layout
Multiple Choice Single Answer
Question Foreign trade is controlled by Government for :-
Correct Answer Promoting export &controlling import
Multiple Choice Multiple Answer
Question In review system-optional replenishment :-
Correct Answer Reorder level is fixed , Review period is fixed
Multiple Choice Multiple Answer
Question The receiving stores copy is used by it :-
Correct Answer To ensure that supplier effects supply of only items ordered on him. , To ensure that supplier does not supply more than the quantity stipulated in the purchase order. , To ensure that the supplier effect deliveries through the mode of transport asked for by the buyer.
True/False
Question A company wishing to use preferred numbers must decide first the smallest size to be made, then largest size to be made and then the total no. of sizes to be made.
Correct Answer True
Multiple Choice Single Answer
Question Finished goods means :-
Correct Answer Goods which are ready to ship
True/False
Question JIT purchasing is indirectly the activity of pushing inventory on the suppliers.
Correct Answer True
Multiple Choice Multiple Answer
Question Quantity discounts are offered when :-
Correct Answer Buyer tempts to produce large quantity , Production is higher & cost is less
Multiple Choice Multiple Answer
Question Advantages of fixed price agreements are :-
Correct Answer They are easy to administer , They give certainty to the buyer who knows from the start, amount he has to pay for the goods/services. , They protect buyer from possible financial risks from price escalations
Select The Blank
Question Originating department of daily material receipt report is ________.
Correct Answer Receiving store
Select The Blank
Question ________ is the arrangement of items into groups according to a pre determined pattern.
Correct Answer Classification
Multiple Choice Multiple Answer
Question Main information in the bill of material is :-
Correct Answer Part no. , Material specification , Quantity per assembly
Match The Following
Question Correct Answer
LC Labour cost as considered at the time of contract
MA Actual material cost as on date.
MC Material cost as considered at the time of contract
LA Actual labour cost as on date
Multiple Choice Single Answer
Question Heat is :-
Correct Answer An physical agent
Multiple Choice Single Answer
Question A formal request to the purchase department, by the indentor to procure the items mentioned therein and within the indicated time schedule is :-
Correct Answer Purchase indent
True/False
Question Coal and coke gas used for power generation and process heating are direct materials.
Correct Answer False
Select The Blank
Question In a contract of sale by description the goods sold must be of ________ quality.
Correct Answer Merchantable
True/False
Question Annual total cost remain constant though stock-turn over rate changes.
Correct Answer False
Multiple Choice Multiple Answer
Question Obsolescence cost is :-
Correct Answer Due stock on hand , Part No. / Name
True/False
Question Single tender system is used when there is only one supplier of the item.
Correct Answer True
Select The Blank
Question In traditional purchasing, quality is confirmed ________.
Correct Answer On receipt
Materials Management - 9
Multiple Choice Single Answer
Question
The basic materials which have not undergone any conversion since their receipts from suppliers is :-
Correct Answer
Raw material
Multiple Choice Single Answer
Question
Heat is :-
Correct Answer
An physical agent
Multiple Choice Single Answer
Question
Inventory control system means :-
Correct Answer
To achieve basic purpose of inventory creation
Multiple Choice Multiple Answer
Question
Salient characteristics of kodak system are :-
Correct Answer
Materials are divided into few broad classifications , Each preliminary class is further divided into sub classes , Each sub class is next amplified into kind of items
True/False
Question
Turnover discount is usually related to the annual business and is paid in the form of credit note at the end of the year.
Correct Answer
True
True/False
Question
Manual inspection is economical when volume of output is small.
Correct Answer
True
Multiple Choice Multiple Answer
Question
Set-up cost is associated with :-
Correct Answer
Period , Number of production runs
Multiple Choice Single Answer
Question
Stock taking is the responsibility of :-
Correct Answer
Stores
Match The Following
Question
Correct Answer
Nut bolts
Miscellaneous
Table and chair
Office equipment
Grinding machine
Capital equipment
Rimmer
Hand tools
Select The Blank
Question
Standardized containers eliminates ________
Correct Answer
Transit damage
Multiple Choice Multiple Answer
Question
What are the forecasting techniques?
Correct Answer
Regression analysis , Exponential smoothening , Moving average
Select The Blank
Question
Deterioration of rubber parts can be avoided by ________.
Correct Answer
Application of French chalk
True/False
Question
No restrictions are on rail transport.
Correct Answer
True
Multiple Choice Single Answer
Question
Primary function means :-
Correct Answer
Basics required to make product worth
Select The Blank
Question
A bonnet of motor-car is an ________.
Correct Answer
Protection to engine
True/False
Question
Import substitution in reality should be looked upon as "Import avoidance"
Correct Answer
True
Multiple Choice Multiple Answer
Question
Quantity discounts are offered when :-
Correct Answer
Buyer tempts to produce large quantity , Production is higher & cost is less
Select The Blank
Question
GRR are sent from ________.
Correct Answer
Stores Dept.
Select The Blank
Question
Method suitable for items which are either of purely seasonal is ________.
Correct Answer
Seasonal buying
Multiple Choice Single Answer
Question
Deterioration implies :-
Correct Answer
Reduction in value of material
Multiple Choice Multiple Answer
Question
Lowest price may be quoted by the prospective seller :-
Correct Answer
Deliberately with an intention to gain entry into the buyer's company , On account of failure to estimate the cost correctly and accurately. , Due to arithmetical errors in his cost estimates.
Select The Blank
Question
Set-up cost for manufactured item in own plant is ________.
Correct Answer
Very high
Multiple Choice Single Answer
Question
The submission of the final offers by the prospective sources is :-
Correct Answer
Firm bidding
True/False
Question
Deterioration & Obsolescence cost are similar.
Correct Answer
False
Multiple Choice Multiple Answer
Question
Value analysis speaks about :-
Correct Answer
Cost improvement , Improvement in quality
Multiple Choice Multiple Answer
Question
Objectives of material research are :-
Correct Answer
To improve capability of purchase department to visualize problems which may be encountered in future. , To make optimum utilization of available resources , To provide the enterprise a competitive edge.
Select The Blank
Question
Fixed price is applied up to certain part of the contract and price is finally determined at an agreed point in the contract is ________
Correct Answer
Fixed price with predetermination
Multiple Choice Multiple Answer
Question
Constituents of cost analysis are :-
Correct Answer
Raw material , Labour cost
Multiple Choice Single Answer
Question
Policies lay down administrative principles utilized in framing procedures and rules is :-
Correct Answer
Internal policies
Select The Blank
Question
________ reduce problems of material planning.
Correct Answer
Reduction in lead time
True/False
Question
OEM discount is given by the supplier with a view to widen customer's base.
Correct Answer
True
Multiple Choice Single Answer
Question
The organization set up by FAO & WHO to evolve food standards :-
Correct Answer
Codex Alimentarious commission
Select The Blank
Question
________ received in the daily mail can also provide information on the vendors of items which the buyer's company is interested in developing.
Correct Answer
Circulars
True/False
Question
Master production schedule is not a forecast of demand but is plan for production.
Correct Answer
True
True/False
Question
Reorder quantity in fixed order interval system equal economic order quantity.
Correct Answer
False
Select The Blank
Question
In traditional purchasing, quality is confirmed ________.
Correct Answer
On receipt
Multiple Choice Multiple Answer
Question
The receiving stores copy is used by it :-
Correct Answer
To ensure that supplier effects supply of only items ordered on him. , To ensure that supplier does not supply more than the quantity stipulated in the purchase order. , To ensure that the supplier effect deliveries through the mode of transport asked for by the buyer.
Multiple Choice Single Answer
Question
Material requisition means :-
Correct Answer
Material request note signed by authorized person
True/False
Question
Make or buy decision are of common concern to both materials and production department.
Correct Answer
True
Multiple Choice Single Answer
Question
What is the identification & location of stock in store?
Correct Answer
Formulating & updating a system of stores and coding to items which should ensure efficient identification & location of goods.
Match The Following
Question
Correct Answer
Vendor rating
Right source
Replenishment method
Right time
Competitive bidding
Right price
EOQ
Right quantity
Multiple Choice Multiple Answer
Question
Typical examples of direct materials are :-
Correct Answer
Cloth in the manufacture of garment , Wood in the manufacture of furniture , Fruits in a canning industry
Multiple Choice Multiple Answer
Question
Following are benefits of scientific stoke management :-
Correct Answer
Reduction in downtime by efficient issues , Inventory control , Very less time required to identify & issue material
Multiple Choice Single Answer
Question
What is described in sale of goods Act 1930?
Correct Answer
Various rules concerning delivery of goods to be agreed between seller & buyer
Select The Blank
Question
________ is suitable for procurement of prototypes, fixtures, development items.
Correct Answer
Cost plus percentage of cost.
Multiple Choice Multiple Answer
Question
Steel almirahs are used for storage of :-
Correct Answer
Expensive items , Scarce items
True/False
Question
Contract whose object is not lawful are not void.
Correct Answer
False
Materials Management - 8
True/False
Question
Small parcels, Samples, gifts which are received from other countries provisions of import policy & customs not applied on them.
Correct Answer
False
Match The Following
Question
Correct Answer
Delivery time
As specified in contract
Essential stipulations
Conditions
Collateral stipulations
Warranties
Caveat emptor
Fundamental principle of sale of goods
Multiple Choice Single Answer
Question
For the inspection of special Cutting tools which department is responsible?
Correct Answer
Planning department & inspection department
True/False
Question
Black listing may be for a limited period or for an indefinite period.
Correct Answer
True
Select The Blank
Question
Two-bin system supersedes ________.
Correct Answer
Perpetual inventory
Multiple Choice Multiple Answer
Question
Stores functions include :-
Correct Answer
Receiving and issuing of materials , Keeping the record , Taking precautions to avoid pilferage, theft
Multiple Choice Multiple Answer
Question
Analysis of certification correctness of material is required for :-
Correct Answer
Bar stock , Castings
Select The Blank
Question
________ is followed in public sector organizations to identify the lowest potential bidder.
Correct Answer
Tender system
Select The Blank
Question
Set-up cost for manufactured item in own plant is ________.
Correct Answer
Very high
Select The Blank
Question
The ________ is raised by the receiving stores in receipt of materials and after physical verification of the quantity and quality.
Correct Answer
Goods Receipt Report
True/False
Question
Metals should be stored at least 15-20 cm above the ground.
Correct Answer
True
True/False
Question
JIT purchasing is indirectly the activity of pushing inventory on the suppliers.
Correct Answer
True
Multiple Choice Single Answer
Question
Annual total cost is :-
Correct Answer
Annual Material Cost + Annual Procurement Cost + Annual ICC
True/False
Question
No restrictions are on rail transport.
Correct Answer
True
Multiple Choice Multiple Answer
Question
Advantages of forward buying are :-
Correct Answer
Greater margin of profit on finished goods , Saving in procurement expenses as purchases are usually consolidated. , Security against shortages
Multiple Choice Single Answer
Question
The purchase of variety of items from single source is called as :-
Correct Answer
Blanket orders
True/False
Question
Inventory control technique is suited for low value indirect materials which are economical to procure them in certain pre fixed quantities.
Correct Answer
True
Multiple Choice Single Answer
Question
Contracts of A & B class items should have :-
Correct Answer
Value engineering
True/False
Question
Reorder quantity in fixed order interval system equal economic order quantity.
Correct Answer
False
Select The Blank
Question
Indian railways carry almost ________ goods & passenger traffic.
Correct Answer
0.75
Select The Blank
Question
The purchasing of Weigh bridge is________
Correct Answer
Capital purchasing
Multiple Choice Multiple Answer
Question
Techniques of Simplification :-
Correct Answer
Preferred numbers , Frequency analysis , Rationalized codification
Multiple Choice Multiple Answer
Question
Correct issues must have :-
Correct Answer
Written requisitions , Authorized requisitions
Multiple Choice Multiple Answer
Question
Rejection percentage to be allowed to the vendor depends on the :-
Correct Answer
Configuration of component , Number of operations involved , Tolerances and surface finishes
Select The Blank
Question
One of the major pipe-line in India is ________.
Correct Answer
Ankaleshwar - Baroda
Select The Blank
Question
GRR are sent from ________.
Correct Answer
Stores Dept.
Multiple Choice Multiple Answer
Question
Continuous Stock-taking is effective due to :-
Correct Answer
Planned/scheduled activity , Discrepancies are noticed & corrected in short spell
Multiple Choice Single Answer
Question
Limited competition is associated with higher price while wider competition enables buying at competitive rates is known as :-
Correct Answer
Extent of competition
Select The Blank
Question
________ is an addition of unnecessary cost to product
Correct Answer
Poor design
Multiple Choice Multiple Answer
Question
The alpha numerical system operates as under :-
Correct Answer
Each item is identified and is given a proper description. , Identical items are classified into groups and each group is provided a suitable heading. , Codes are assigned to the next group, which are usually the alphabets.
Multiple Choice Single Answer
Question
How much saving in material cost can give benefit equivalent to eight to nine % rise in sales volume?
Correct Answer
0.01
Multiple Choice Single Answer
Question
The purchasing made under contract , usually formal, of needed materials, the delivery of which is frequently spread over a period of time is known as :-
Correct Answer
Contract buying
Multiple Choice Single Answer
Question
Which type of tendering is adopted when the requirements are urgent?
Correct Answer
Limited tender
True/False
Question
Continuous stock-taking tends to dislocate the working of store.
Correct Answer
False
True/False
Question
PO gives full and complete details of the materials to be supplied thereby avoiding ambiguities.
Correct Answer
True
Multiple Choice Single Answer
Question
External lead time is :-
Correct Answer
Supplier's lead time
Match The Following
Question
Correct Answer
Supplies
Abrasive materials
Perishable materials
Vegetables
Packing materials
Carton
Empties
Metal containers
Multiple Choice Multiple Answer
Question
Primary duties to be performed by purchase department are :-
Correct Answer
Receipts, sorting of purchase indents and determination of method of buying , Performance evaluation and feedback , Search for suppliers
Multiple Choice Multiple Answer
Question
In F.O.R. contract seller is responsible for :-
Correct Answer
Arranging for movement of goods to the transporter's godown , Safe loading on into the vehicle , Keeping the material in deliverable state
Multiple Choice Single Answer
Question
Primary function means :-
Correct Answer
Basics required to make product worth
Multiple Choice Single Answer
Question
Who act as a link between company's financial department and supplier's for timely payment?
Correct Answer
Purchase division
Select The Blank
Question
Review system-optional replenishment is a modification of ________.
Correct Answer
Fixed-order interval system
Multiple Choice Single Answer
Question
Value analysis job plan contains :-
Correct Answer
9 steps
Multiple Choice Multiple Answer
Question
Functions of Traffic division :-
Correct Answer
Tracing missing consignments , Selecting the right kind of shipping service , Scrutinizing freight bills for payment.
Select The Blank
Question
________Inspects the goods & issues a surveyor report certificate.
Correct Answer
Surveyor
Multiple Choice Multiple Answer
Question
Objectives of material research are :-
Correct Answer
To improve capability of purchase department to visualize problems which may be encountered in future. , To make optimum utilization of available resources , To provide the enterprise a competitive edge.
True/False
Question
Two bin system is better as compared to perpetual inventory system.
Correct Answer
False
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