Material

Select The BlankQuestion

Inspection methods analyze ________.Correct Answer

Degree of inspectionYour Answer

Quality of material

Multiple Choice Single AnswerQuestion

In Fixed-Order quantity system, cycle time of consumption should be :-Correct Answer

More than lead timeYour Answer

Less than lead-time


In the ________ , the composition of code is in three groups of digits that are separated by hyphens, the hyphens serves to break the code into easy to

handle group of digits.Correct Answer Kodak systemYour Answer Kodak system


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

Your Answer Misrepresentation of facts

Multiple Choice Single AnswerQuestion JIT is an :-

Correct Answer Inventory reduction technique

Your Answer Just-in-time


Issues to top up supply to pre-fixed levels of items are :-

Correct Answer Imprest issuesYour Answer

Imprest issues

True/FalseQuestion

Two bin system is better as compared to perpetual inventory system.Correct Answer

FalseYour Answer

True

Multiple Choice Multiple AnswerQuestion

Annual total cost changes :-Correct Answer

If stock turnover rate changes , If quantity changesYour Answer

If stock turnover rate changes , If procurement cost changes , If set-up cost changes

True/FalseQuestion

Functionally critical parts require to be covered under cent per cent inspection

Correct Answer True

Your Answer False


GRR are sent from ________.Correct Answer

Stores Dept.Your Answer Stores Dept.


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

Your Answer

Price disclosure


Good ________ relations are necessary for effective materials planning as every department is involved in materials planning because each

department requires one item or other another.Correct Answer DepartmentalYour Answer Departmental


The following are the actions would help to improve effectiveness of materials planning :-

Correct Answer Accurate forecasting , Computerization , Shorter materials plan period

Your Answer Accurate forecasting , Computerization , Shorter materials plan period

Match The FollowingQuestion

Correct AnswerYour Answer

JEJournal EntriesJournal Entries

POPurchase orderPurchase order

GRNGoods receipt noteGoods receipt note

DNDiscrepancy note.Discrepancy note.

True/FalseQuestion

Cancellation of orders on flimsy ground is unethical.Correct Answer

TrueYour Answer

True


Standardized containers eliminates ________Correct Answer Transit damage

Your Answer Transit damage


Purchase order offers acceptance and have been clearly laid down in :-Correct Answer

Indian Contract act 1872Your Answer

Indian Contract act 1872


For the inspection of Stationery which department is responsible?Correct Answer

StoresYour Answer

Stores



FAS (4-2)Sale at the port of destination

Sale at port of exportFOB (1-1)

Sale is made on FOB vesselSale is made on FOB vessel

CIF (2-4)Sale is made at port of destination

Sale at the port of destinationCFR (3-3)

Sale at port of exportSale is made at port of destination


Reprocessing of Scrap is :-Correct Answer

Reclaiming for re-use

Your Answer Reclaiming for re-use


Limit gauges are used to verify :-Correct Answer

Whether the product is within the specificationYour Answer

Whether the product is within the specification


Which of the following is not the internal factor influencing materials planning?

Correct Answer International market

Your Answer International market


The system should be designed in such a way that it serves the advantages that are expected to accrue from it, is called as :-

Correct Answer Objective oriented

Your Answer Objective oriented


Real creative ideas results :-Correct Answer

When members ventures into impossible areasYour Answer

When opportunity is given to staff


Segregation of scrap means :-Correct Answer

Sorting by type, size, grade etc. , Sorting by grade, weightYour Answer

Sorting by type, size, grade etc. , Sorting by grade, weight

Select The Blank

Question ________clause should be inserted in the purchase order of items critical to

project to induce supplier for early completion of the orders.Correct Answer

BonusYour Answer

Penalty for delay

True/FalseQuestion

Single tender system is used when there is only one supplier of the item.Correct Answer

TrueYour Answer

True


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

Your Answer Reduction in downtime by efficient issues , Inventory control , Very less time

required to identify & issue material

True/FalseQuestion

Stores is the "Safe Custody" for keeping materialsCorrect Answer

TrueYour Answer

True

True/FalseQuestion

Value analysis is the cost reduction technique.Correct Answer

TrueYour Answer

True

True/FalseQuestion

Codification avoids confusion and doubt caused by long description of items.Correct Answer

TrueYour Answer

True


Complaints concerning should be made in such a way that negative reactions are avoided such as :-

Correct Answer Delivery failures , Rejection , Shortages

Your Answer Delivery failures , Rejection , Shortages

True/FalseQuestion

A firm engaged in custom-built-product, is usually plagued with obsolete material.

Correct Answer True

Your Answer True


________ refers to the procurement of the requirements of all departments of the firm by a central purchase organization.

Correct Answer CentralisationYour Answer Centralisation


Conventional machine set-up time includes :-Correct Answer

Tool replenishment , First piece inspectionYour Answer

Tool replenishment , First piece inspection , Set-up


Stock-out is due to :-Correct Answer

Unusual high demands , Delay in deliveriesYour Answer

Unusual high demands , Delay in deliveries , Machine break-down

True/FalseQuestion

Negotiation should end up with an unhappy supplier.Correct Answer

FalseYour Answer

False


Systematic, formal and continuous analysis of all factors affect ________ management function is known as Materials research.

Correct Answer Materials

Your Answer Materials

True/FalseQuestion

Since stock-taking is a check on storekeeper, it should not be conducted by him.

Correct Answer False

Your Answer False


Salient features of the working of the price panel are as under :-Correct Answer

Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the

secretary of the price panel , Members of the panel meet to scrutinize and discuss the cost aspects.

Your Answer Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the



Application for an import license must be signed from :-Correct Answer

Proprietor , Partner of firm , Person duly authorized by board of directors of

companyYour Answer

Proprietor , Partner of firm , Person duly authorized by board of directors of company

True/FalseQuestion

Manual inspection is economical when volume of output is small.Correct Answer

TrueYour Answer

True


For large organizations where product is made up of assemblies of manufactured components raw material store is subdivided into :-

Correct Answer Foundry store , Tool crib , Maintenance store

Your Answer Foundry store , Tool crib , Goods inward store

True/FalseQuestion

Post parcel consignments are cleared through customs & clearance is done through foreign post office.

Correct Answer True

Your Answer True


What is the meaning of discharge of contract by novation?Correct Answer

If the parties agree to substitute a new contract in place of existing one or alter it, original contract is discharged

Your Answer If the parties agree to substitute a new contract in place of existing one or

alter it, original contract is discharged


Quantity delivered of goods must be according to the ________.Correct Answer

Terms of contract

Your Answer Terms of contract


Which of the following is not the external factor influencing materials planning?

Correct Answer Corporate objective

Your Answer Corporate objective

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Labels: Materials Management

Materials Management - 3


Inspection methods analyze ________.Correct Answer

Degree of inspectionYour Answer

Quality of material


In Fixed-Order quantity system, cycle time of consumption should be :-Correct Answer

More than lead timeYour Answer

Less than lead-time


In the ________ , the composition of code is in three groups of digits that are separated by hyphens, the hyphens serves to break the code into easy to

handle group of digits.Correct Answer Kodak systemYour Answer Kodak system





Multiple Choice Single AnswerQuestion JIT is an :-

Correct Answer Inventory reduction technique

Your Answer Just-in-time


Issues to top up supply to pre-fixed levels of items are :-Correct Answer Imprest issuesYour Answer

Imprest issues

True/FalseQuestion


FalseYour Answer

True


Annual total cost changes :-Correct Answer

If stock turnover rate changes , If quantity changesYour Answer

If stock turnover rate changes , If procurement cost changes , If set-up cost changes

True/FalseQuestion

Functionally critical parts require to be covered under cent per cent inspection

Correct Answer True

Your Answer False







Your Answer Price disclosure


Good ________ relations are necessary for effective materials planning as every department is involved in materials planning because each

department requires one item or other another.Correct Answer DepartmentalYour Answer Departmental




Your Answer Accurate forecasting , Computerization , Shorter materials plan period







True/FalseQuestion


TrueYour Answer

True


Standardized containers eliminates ________Correct Answer Transit damage

Your Answer Transit damage


Purchase order offers acceptance and have been clearly laid down in :-Correct Answer

Indian Contract act 1872Your Answer

Indian Contract act 1872


For the inspection of Stationery which department is responsible?Correct Answer

StoresYour Answer

Stores



FAS (4-2)Sale at the port of destination

Sale at port of exportFOB (1-1)

Sale is made on FOB vesselSale is made on FOB vessel

CIF (2-4)Sale is made at port of destination

Sale at the port of destinationCFR (3-3)

Sale at port of exportSale is made at port of destination


Reprocessing of Scrap is :-Correct Answer

Reclaiming for re-useYour Answer

Reclaiming for re-use


Limit gauges are used to verify :-Correct Answer

Whether the product is within the specificationYour Answer

Whether the product is within the specification


Which of the following is not the internal factor influencing materials planning?

Correct Answer International market

Your Answer International market


The system should be designed in such a way that it serves the advantages that are expected to accrue from it, is called as :-

Correct Answer Objective oriented

Your Answer Objective oriented


Real creative ideas results :-Correct Answer

When members ventures into impossible areasYour Answer

When opportunity is given to staff


Segregation of scrap means :-Correct Answer

Sorting by type, size, grade etc. , Sorting by grade, weightYour Answer

Sorting by type, size, grade etc. , Sorting by grade, weight


________clause should be inserted in the purchase order of items critical to project to induce supplier for early completion of the orders.

Correct Answer Bonus

Your Answer Penalty for delay

True/FalseQuestion


TrueYour Answer

True




Your Answer Reduction in downtime by efficient issues , Inventory control , Very less time


True/FalseQuestion


TrueYour Answer

True

True/FalseQuestion


TrueYour Answer

True

True/FalseQuestion

Codification avoids confusion and doubt caused by long description of items.Correct Answer

TrueYour Answer

True





True/FalseQuestion

A firm engaged in custom-built-product, is usually plagued with obsolete material.

Correct Answer True

Your Answer True


________ refers to the procurement of the requirements of all departments of the firm by a central purchase organization.

Correct Answer Centralisation

Your Answer Centralisation


Conventional machine set-up time includes :-Correct Answer

Tool replenishment , First piece inspectionYour Answer

Tool replenishment , First piece inspection , Set-up



Unusual high demands , Delay in deliveriesYour Answer

Unusual high demands , Delay in deliveries , Machine break-down

True/FalseQuestion

Negotiation should end up with an unhappy supplier.Correct Answer

FalseYour Answer

False





True/FalseQuestion

Since stock-taking is a check on storekeeper, it should not be conducted by him.


Your Answer False

Multiple Choice Multiple Answer

Question Salient features of the working of the price panel are as under :-

Correct Answer Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the





Application for an import license must be signed from :-Correct Answer

Proprietor , Partner of firm , Person duly authorized by board of directors of company

Your Answer Proprietor , Partner of firm , Person duly authorized by board of directors of

company

True/FalseQuestion

Manual inspection is economical when volume of output is small.Correct Answer

TrueYour Answer

True


For large organizations where product is made up of assemblies of manufactured components raw material store is subdivided into :-

Correct Answer Foundry store , Tool crib , Maintenance store

Your Answer Foundry store , Tool crib , Goods inward store

True/FalseQuestion


Correct Answer True

Your Answer True


What is the meaning of discharge of contract by novation?Correct Answer

If the parties agree to substitute a new contract in place of existing one or alter it, original contract is discharged

Your Answer If the parties agree to substitute a new contract in place of existing one or

alter it, original contract is discharged


Quantity delivered of goods must be according to the ________.Correct Answer

Terms of contractYour Answer

Terms of contract








LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/FalseQuestion

In fixed-order interval system, order interval is fixed.Correct Answer

TrueYour Answer

True

True/FalseQuestion

Pre-fixed qty. issue system is suitable for A-class items.Correct Answer

FalseYour Answer

True


________ find their use in identification of raw materials, lubricants, pipelines etc.

Correct Answer Colour codesYour Answer Colour codes


Two-bin system supersedes ________.Correct Answer

Perpetual inventoryYour Answer

Variable inventory


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

Your Answer Paying for the local transport , Arranging for movement of goods to the

transporter's godown , Safe loading on into the vehicle


Organization decided to import when :-Correct Answer

Item is not available in the countryYour Answer

Item is not available in the country

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

Your Answer Contract buying


Internal lead time can be reduced :-Correct Answer

By selectively delegating the powers , By developing local vendorYour Answer

By selectively delegating the powers , By developing local vendor , By better paper-work

True/FalseQuestion

Telephonic quotations are useful when there is limited competition.Correct Answer

TrueYour Answer

True


The point of transfer of ownership rights from seller to buyer is :-Correct Answer Place of delivery

Your Answer Spare part and supply contracts


Prices of certain commodity may be fixed by the government and thereby putting a restriction on both buyer and seller is :-

Correct Answer Government restrictions

Your Answer Government restrictions



Review periodOrder interval

Two-bin systemFOQ systemB-class itemsB-class items

Reduction in record-keepingTwo-bin systemOrder interval

Fixed-Order Interval systemFixed order intervalFixed order interval


Average inventory in any replenishment system is ________ to sum of minimum & maximum stock.

Correct Answer Equal

Your Answer Steady


Following are distinguishing features of Air consignment :-Correct Answer

No system of prior entry , 3 free days are allowed from flight dateYour Answer

No system of prior entry , 3 free days are allowed from flight date , All rules are same for Air & Sea consignment


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

Your Answer Cloth in the manufacture of garment , Wood in the manufacture of furniture ,

Fruits in a canning industry

True/FalseQuestion

Cost of capacity which may be rendered idle if the item currently being manufactured in purchased needs to be added to the cost to buy.

Correct Answer

TrueYour Answer

True


Following special schemes are announced by Indian Government under which import can be permitted at zero duty or at less duty :-

Correct Answer Export promotion capital goods scheme , Diamond &Jewellary promotion

scheme , Import by 100% export oriented unitsYour Answer

Export promotion capital goods scheme , Diamond &Jewellary promotion scheme


Government departments and public sector undertakings in India follow this method of buying :-

Correct Answer Tender buyingYour Answer

Blanket orders


Correct AnswerYour AnswerRight place

Delivery as per contractDelivery as per contract

Buyers rightExamine the goods

Examine the contractUnpaid sellers right

Of lienAttack on buyers property

DeliveryTransfer of ownership rights from seller to the buyer

Of lien


Acceptance sampling plans have been evolved ________.Correct Answer

Based on probability theory

Your Answer Based on probability theory

True/FalseQuestion

Purchase cost is the price paid the supplierCorrect Answer

TrueYour Answer

True

True/FalseQuestion

Esteem value is paid by the supplier.Correct Answer

FalseYour Answer

True

True/FalseQuestion

Vendors are not responsible for statutory approvals from government authorities.


Your Answer True


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 escalationsYour Answer


buyer from possible financial risks from price escalations


The threat on the part of supplier to hold supplies until favourable price decisions is :-

Correct Answer Ability to hold on price

Your Answer Ability to hold on price


Finished parts are called as ________.Correct Answer Bought-out parts

Your Answer Auxillary parts


Tendering in the absence of negotiations is also called ________.Correct Answer

Firm biddingYour Answer

Schedule buying


Special stores are created where :-Correct Answer

Material need to be held under the control of the bank , Material need to be held for perishable items , Material need to be held for explosive &

inflammable itemsYour Answer

Material need to be held under the control of the bank , Material need to be held for perishable items , Material need to be held for costly items


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.

Your Answer Formulating & updating a system of stores and coding to items which should

ensure efficient identification & location of goods.


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 inventoriesYour Answer

In process inventories

True/FalseQuestion

Noting clerk examines bill of entry papers & if found in order signs the bill of entry.

Correct Answer True

Your Answer True


The organization set up by FAO & WHO to evolve food standards :-Correct Answer

Codex Alimentarious commissionYour Answer

Codex Alimentarious commission


Salient features of the working of the price panel are as under :-Correct Answer

Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the





The method used for making purchases of proprietary items is :-Correct Answer

Single tenderYour Answer Open tender


All incoming materials are insured against ________

Correct Answer Damage / lossYour Answer

Value of material


Disadvantages of forward buying are :-Correct Answer

Such a buying may not serve entirely the needs of the production department , Price expectations if not realised may result in major financial

loss to the firm. , Large scale obsolescence may result if design changes occur.

Your Answer Such a buying may not serve entirely the needs of the production

department , Price expectations if not realised may result in major financial loss to the firm. , Inventory holding charges are lower.

True/FalseQuestion

Lead time information is required for determination of safety stock.Correct Answer

FalseYour Answer

True

True/FalseQuestion

Fire extinguishers should be very near to staff members.Correct Answer

FalseYour Answer

True


In Ex-works contract buyer is responsible for :-Correct Answer

Arranging for transport including loading on to the vehicle at supplier's works , Paying for freight , Arranging for transit insurance

Your Answer Keeping the material in deliverable state , Arranging for transport including

loading on to the vehicle at supplier's works


Sales returns means :-Correct Answer

Receipt of goods from CustomerYour Answer

Rejection of goods


Cost of special tooling is called as ________.Correct Answer

Cost to buyYour Answer Cost to buy


________ is followed in public sector organizations to identify the lowest potential bidder.Correct Answer Tender systemYour Answer

Tender system


Stock-out is nothing but ________.Correct Answer

Stock get depleted before receiptYour Answer

Nil stock


The orders, to the extent possible should be avoided is called as :-Correct Answer

RushYour Answer

Rush


Deterioration of electrodes causes :-Correct Answer

Increase in arc instability , Excessive spatterYour Answer

Increase in arc instability , Excessive spatter , High smoke while using


Following agreement have been expressly declared void as per the Indian Contract Act 1872 :-

Correct Answer Agreement in restraint of marriage , Agreement by way of wages ,

Agreements to do impossible actsYour Answer

Agreement in restraint of marriage , Agreements in restraints of business , Agreement by way of wages


Systematic ________of stores is the key to its efficient operation.Correct Answer

LayoutYour Answer

Layout





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

Your Answer Search for suppliers , Receipts, sorting of purchase indents and

determination of method of buying , Performance evaluation and feedback

True/FalseQuestion

Indentor's copy is meant to enable indentor to follow up with the purchase department.

Correct Answer True

Your Answer True

Select The Blank

Question ________specification are usually flexible and can be altered during

consultation with different manufacturers of the equipment.Correct Answer

EquipmentYour Answer Equipment


Second bin quantity can be qualified by :-Correct Answer

m + L x CYour Answer

m + L x C

True/FalseQuestion

Continuous stock-taking tends to dislocate the working of store.Correct Answer

FalseYour Answer

False


Redundant Stock is nothing but :-Correct Answer

Worthless for conversion & other useYour Answer

Worthless for conversion & other use


The cost incurred in providing adequate insurance cover to the materials in transit and in storage is

Correct Answer Insurance costYour Answer

Insurance cost


Set-up cost for manufactured item in own plant is ________.Correct Answer

Very high

Your Answer Very high


The buying which is received in staggered lots, each lot at times may equal EOQ is :-

Correct Answer Contract buying

Your Answer Schedule buying


Price of the commodity is conditioned by the forces of supply and demand is :-

Correct Answer Demand and supply condition

Your Answer Demand and supply condition


The submission of the final offers by the prospective sources is :-Correct Answer

Firm biddingYour Answer Firm bidding


________ of the department refers to the placement of the department in the structure of the company.

Correct Answer Status

Your Answer Size


Paper work cost is ________.Correct Answer

Procurement costYour Answer

Procurement cost

True/FalseQuestion

The trade discount is not allowed as a percentage of published price.Correct Answer

FalseYour Answer

False


What are the different methods of identifying materials?Correct Answer

Tagging , Labeling , EngravingYour Answer

Tagging , Labeling , Engraving





True/FalseQuestion

Multiple sampling is an extension of the double sampling plan.Correct Answer

TrueYour Answer

True



Labour management relationsInvestigating into suppliers capabilitiesInvestigating into suppliers capabilities

Technical discussions between the representatives of a buyer and supplierTechno commercial discussion and trial orderTechno commercial discussion and trial order

Follow up with the supplier until sample submissionSample validationSample validation

Type of supplierPreliminary selection of the suppliersPreliminary selection of the suppliers


Review system-optional replenishment is a modification of ________.Correct Answer

Fixed-order interval systemYour Answer

Re-order level system


Costs involved in materials management areCorrect Answer

Basic cost of materials , Government tax and levies , Ordering costYour Answer

Basic cost of materials , Government tax and levies , Ordering cost

True/FalseQuestion

Safety stock forms a fixed portion of inventories.Correct Answer

TrueYour Answer

True

True/FalseQuestion

Maintenance and repair costs in used equipments are relatively higher.Correct Answer

TrueYour Answer

True


What are the areas of control to improve profitCorrect Answer

Increase units sold , Increase production , Reducing capitalYour Answer

Increase units sold , Increase production , Reducing capital


Main transport documents used by trade are :-Correct Answer

RR , LRYour Answer

RR , LR


Quantity based advance license is based on standard of :-Correct Answer

Input-output norms fixed by ALCYour Answer

Input-output norms fixed by ALC


Originating department of daily material receipt report is ________.Correct Answer Receiving storeYour Answer

Purchase department


What are the limitations of alpha betical system?Correct Answer

Repetition of alphabets often leads to confusion and wrong identification , The selection of proper alphabets for each of the items is difficult. , The

codes cannot be amplified which restricts its use to smaller firmsYour Answer

Repetition of alphabets often leads to confusion and wrong identification , The selection of proper alphabets for each of the items is difficult. , The

codes cannot be amplified which restricts its use to smaller firms

True/FalseQuestion

Small parcels, Samples, gifts which are received from other countries provisions of import policy & customs not applied on them.


Your Answer False


Malpractices are ________.

Correct Answer Manipulations by stores staff

Your Answer Common in all stores

True/FalseQuestion

The registered firms are required to submit security deposit which is required from unregistered firms.


Your Answer False


In instantaneous replenishment system :-Correct Answer

Item consumption demand rate is constantYour Answer

Item consumption demand rate is constant


Store manager has to ensure security :-Correct Answer

Of store buildings , Of stock yardsYour Answer

Of store buildings , Of stock yards , Of stores staff


The process of procurement of raw material, wip, finished goods, jigs, fixtures and other tools and equipments which are required for the operation

and maintenance of a manufacturing plant is known asCorrect Answer

PurchasingYour Answer Purchasing


Receiving inspector should have to :-Correct Answer

Segregate defectives , Maintain vendor wise quality recordsYour Answer

Segregate defectives , Maintain vendor wise quality records


Identifying the need for source selection and source development is :-Correct Answer

Source requirement stageYour Answer

Source requirement stage

True/FalseQuestion

Supplier's delivery ratings should be communicated on periodical basis.Correct Answer

TrueYour Answer

True


Correct AnswerYour AnswerVendor ratingRight sourceRight source

Replenishment methodRight timeRight time

Competitive biddingRight priceRight price

EOQRight quantityRight quantity


EOQ means :-Correct Answer

When total cost & right quantity are balancedYour Answer

When total cost & right quantity are balanced


The cost incurred in movement of materials from suppliers works to buyer's

works isCorrect Answer

Freight costYour Answer Freight cost


Value analysis speaks about :-Correct Answer

Cost improvement , Improvement in qualityYour Answer

Cost improvement , Improvement in quality




buyer from possible financial risks from price escalationsYour Answer




Main information in the bill of material is :-Correct Answer

Part no. , Material specification , Quantity per assemblyYour Answer

Part no. , Material specification


________ is responsible for purchase of goods of right quality, quantity, time, price and source.Correct Answer

Purchase divisionYour Answer

Purchase division


The system not only should identify and classify all the existing items and it

should have enough extra unassigned codes to absorb future items is called as :-

Correct Answer Flexibility

Your Answer Flexibility


Purchasing today is no longer just a commercial activity but it is a techno commercial activity. This is known as :-

Correct Answer Changing nature of purchases

Your Answer Changing nature of purchases

True/FalseQuestion

Black listing may be for a limited period or for an indefinite period.Correct Answer

TrueYour Answer

True


Actions involved in sample validation are :-Correct Answer

Follow up with the supplier until sample submission , Sample inspection , Feedback on defects and defect prevention

Your Answer Sample inspection , Sample rejection

True/FalseQuestion

Bulky items impervious to weather is kept at very safe place inside store.Correct Answer

FalseYour Answer

False


Petroleum product imports are channealised through________.Correct Answer

Indian oil corporation

http://scdlpapers.blogspot.com/search/label/Materials%20Management(Set-2)

Your Answer Indian oil corporation


Procurement by more than one firm by pooling their requirements is :-Correct Answer

Cooperative buyingYour Answer

Cooperative buying


For the inspection of special Cutting tools which department is responsible?Correct Answer

Planning department & inspection departmentYour Answer

Maintenance department







The cost incurred in providing adequate insurance cover to the materials in transit and in storage is

Correct Answer Insurance costYour Answer

Insurance cost





Question Import transactions are subject to following additional laws compared to

procurement from sources within the country as :-Correct Answer

Import trade control act ®ulation , Custom act , Central excise Rules 2002Your Answer

Import trade control act ®ulation , Custom act , Trade policy act 2000

True/FalseQuestion

Projects are usually subjected to uncertainty & often delay takes place in completion of projects which results in cost over runs.

Correct Answer True

Your Answer True

True/FalseQuestion

Contract whose object is not lawful are not void.Correct Answer

FalseYour Answer

False

True/FalseQuestion

Shortage chasing is intended to remind the supplier of the due date and obtain advance information of expected delays.


Your Answer False


Optimal purchase quantity comprises :-Correct Answer

Annual inventory carrying cost , Annual procurement costYour Answer

Annual inventory carrying cost , Annual procurement cost , Set-up cost


Steel almirahs are used for storage of :-Correct Answer





Expensive items , Scarce itemsYour Answer

Expensive items , Scarce items , High risk materials


Some of the benefits if materials are supplied by the buyer are :-Correct Answer

The supplies of goods are guaranteed especially during the periods of shortages. , The frequent requests for the price revisions are avoided , The

buyer is sure of the quality of materials.Your Answer

The buyer is sure of the quality of materials. , The frequent requests for the price revisions are avoided , The unnecessary profit on materials are added

by the suppliers.


The buyers are asked to adopt the following method for follow up :-Correct Answer

Telephone , Letters , E-mail, telegramYour Answer

Telephone , Letters , E-mail, telegram

True/FalseQuestion


TrueYour Answer

True






A contract terminates under following condition :-Correct Answer

Discharge by performance , Discharge by Release , Discharge by novation

Your Answer Discharge by performance , Discharge by Release , Discharge by novation



Tender system

True/FalseQuestion

The performance of an equipment can not be verified on the spot if the equipment is not in operation.


Your Answer True



Speculative buyingBulk purchasing

Non perishable itemsCapital purchasing

Plant and machineryPlant and machinery

Group purchasingHardware materials

Bulk purchasingService contract

TypewritersHardware materials

True/FalseQuestion

Metals should be stored at least 15-20 cm above the ground.Correct Answer

TrueYour Answer

True


Costs involved in materials management areCorrect Answer

Basic cost of materials , Government tax and levies , Ordering costYour Answer

Basic cost of materials , Ordering cost , Overhead




Your Answer Location

True/FalseQuestion


TrueYour Answer

True


For large engineering firms main store could be sub divided into :-Correct Answer

Finished part store , Raw material store , Semi finished item storeYour Answer

Raw material store , Semi finished item store , Finished part store


In project procurement what work is covered in detailed engineering stage?Correct Answer

Cross verification of technical specifications & finalisation of commercial terms

Your Answer Cross verification of technical specifications & finalisation of commercial

terms


Sub contracting decisions must be based on outcome of ________ analysis.

Correct Answer Cost benefitYour Answer Cost benefit


Disadvantages of forward buying are :-Correct Answer

Such a buying may not serve entirely the needs of the production department , Price expectations if not realised may result in major financial

loss to the firm. , Large scale obsolescence may result if design changes occur.

Your Answer Price expectations if not realised may result in major financial loss to the

firm. , Large scale obsolescence may result if design changes occur.


Who act as a link between company's financial department and supplier's for timely payment?Correct Answer


Purchase division


What is the meaning of stores layout?Correct Answer

Physical arrangement of space for storage material movement, office etc which should provide for most efficient receipt storage & issue of material

Your Answer Physical arrangement of space for storage material movement, office etc which should provide for most efficient receipt storage & issue of material

True/FalseQuestion

If item is manufactured in small quantities, set-up cost is high.Correct Answer

TrueYour Answer

True


________is suitable for procurement from non-profit making organization.Correct Answer

Cost plus zero feeYour Answer

Fixed price agreements with escalation.


________ reduce problems of material planning.Correct Answer

Reduction in lead timeYour Answer

Reduction in lead time


JIT aims at :-Correct Answer

Reduction in non-value added activitiesYour Answer

Reduction in non-value added activities






Internal factor influencing materials planning:-Correct Answer

Procurement lead timesYour Answer

Procurement lead times


The cost incurred in movement of materials from suppliers works to buyer's works is

Correct Answer Freight cost

Your Answer

Freight cost

True/FalseQuestion

Supplier's delivery ratings should be communicated on periodical basis.Correct Answer

TrueYour Answer

True


When the costs are balanced, total cost is ________.Correct Answer

MinimumYour Answer

Fixed


The process of procurement of raw material, wip, finished goods, jigs, fixtures and other tools and equipments which are required for the operation

and maintenance of a manufacturing plant is known asCorrect Answer

PurchasingYour Answer Store keeping


Mechanical tests are performed to :-Correct Answer

Ascertain the strength of materialsYour Answer

Ascertain the strength of materials


Set-up cost means :-Correct Answer

Cost incurred to replenish the stock of item manufactured at home plantYour Answer

Cost incurred to replenish the stock of item manufactured at home plant


The main responsibility of inventory control division is :-Correct Answer

Fixing inventory levelsYour Answer

Fixing inventory levels






inflammable items


________ is a fundamental form of economical value.Correct Answer Esteem valueYour Answer

Cost value


Discrepancies arising out of theft are tends to ________.Correct Answer Profit & Loss a/c

Your Answer Profit & Loss a/c


What is Earnest money?Correct Answer

Fixed amount collected along with TenderYour Answer

Fixed amount collected along with Tender

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True/FalseQuestion

EOQ model is based on the assumption that unit price is fixed.Correct Answer

TrueYour Answer

False


Obsolescence cost is :-Correct Answer

Due stock on hand , Part No. / NameYour Answer

Due stock on hand , Part No. / Name


Set-up cost comprises of :-Correct Answer

Work-order cost , Idle time costYour Answer

Work-order cost , Idle time cost


Quantity discounts reduces :-Correct Answer

Procurement costYour Answer Material cost


The document which is prepared by the engineering department is :-Correct Answer Bill of materialYour Answer

Bill of material







Down time means ________.Correct Answer

Time required by equipment to become OKYour Answer

Time required by equipment to become OK


Security deposit means :-Correct Answer

Amount as reserve-part kept by scrap contractor for final adjustmentYour Answer

Amount paid by contractor to company


Identifying technical, financial, managerial and quality assurance capability of the vendors and thereby generate data to serve basis for preliminary

source selection is :-Correct Answer

Source investigation stageYour Answer

Source investigation stage


________specification are usually flexible and can be altered during consultation with different manufacturers of the equipment.

Correct Answer Equipment

Your Answer Technical


Issues to top up supply to pre-fixed levels of items are :-Correct Answer Imprest issuesYour Answer

Imprest issues


Requests for price increase are received on account of the following reasons :-

Correct Answer Increase in cost of raw materials and boughtout parts , Changes in tax

structure , Added work contentYour Answer

Increase in cost of raw materials and boughtout parts , Changes in tax structure , Added work content


Stock held by company represents ________.Correct Answer

MoneyYour Answer

Money


Method suitable for items which are either of purely seasonal is ________.Correct Answer Seasonal buying

Your Answer Seasonal buying


The buying which is received in staggered lots, each lot at times may equal EOQ is :-


Your Answer Schedule buying


Special advance license for deemed export is granted in following cases :-Correct Answer

Supply of goods against advance license /Remission scheme , Supply of goods to export oriented units , Supply of capital goods to holders of licenses

under EPCG SchemeYour Answer

Supply of goods against advance license /Remission scheme , Supply of goods to export oriented units , Supply of capital goods to holders of licenses

under EPCG Scheme

True/FalseQuestion

Supplier's request for price increase should be analysed patiently by the buyer. A curt 'no' or 'negative' reply spoils relationships.

Correct Answer True

Your Answer True


Actions involved in sample validation are :-Correct Answer

Follow up with the supplier until sample submission , Sample inspection , Feedback on defects and defect prevention

Your Answer Sample inspection , Feedback on defects and defect prevention





Material need to be held for explosive & inflammable items , Material need to be held for costly items


________ is suitable for procurement of prototypes, fixtures, development items.

Correct Answer Cost plus percentage of cost.

Your Answer Fixed price agreements


In instantaneous replenishment system, production rate is ________ .Correct Answer

InfiniteYour Answer

Constant


Organization decided to import when :-Correct Answer

Item is not available in the countryYour Answer

Item is very critical functioning


Operating systems process data for :-Correct Answer

Routine operations of the depts.Your Answer

Routine operations of the depts.


In MRP-1, manufacturing cycle of finished product is ________.Correct Answer

LongYour Answer

Short



JITHighly vulnerable to supply failures

Purchasing timeTPM

Removal of uncertaintyHighly vulnerable to supply failures

Quality at sourceElimination of incoming inspectionElimination of incoming inspection

Lower unit cost

JITQuantity of production

True/FalseQuestion

Materials department is service department.Correct Answer

TrueYour Answer

False


Malpractices are ________.Correct Answer

Manipulations by stores staffYour Answer

Manipulations by stores staff

True/FalseQuestion

Value analysis is necessary when company's profits soars.Correct Answer

FalseYour Answer

False



Fast moving itemsVery near to the issue counterVery near to the issue counter

AntibioticsIn a air conditioned storeIn a air conditioned store

Costly items like fuel injectorIn locked cupboard & away from entrance of store.In locked cupboard & away from entrance of store.

Inflammable & hazardous itemsIn a separate storeIn a separate store


Discolourisation of soaps is due to :-Correct Answer

Exposure to light , MoistureYour Answer

Exposure to light , Moisture




Your Answer Reduction in downtime by efficient issues , Very less time required to identify

& issue material


Following special schemes are announced by Indian Government under which import can be permitted at zero duty or at less duty :-

Correct Answer Export promotion capital goods scheme , Diamond &Jewellary promotion

scheme , Import by 100% export oriented unitsYour Answer

Export promotion capital goods scheme , Import by 100% export oriented units

True/FalseQuestion


Correct Answer True

Your Answer False

True/FalseQuestion

Number of free days allowed for air consignments is 15 days from the flight date.


Your Answer False

True/False

Question The trade discount is not allowed as a percentage of published price.


Your Answer False


Receiving inspector should have to :-Correct Answer

Segregate defectives , Maintain vendor wise quality recordsYour Answer

Segregate defectives , Maintain vendor wise quality records


Supplier may be asked to provide assistance for the first few days of working so that production losses can be avoided is known as :-

Correct Answer Spare part and supply contracts

Your Answer Seller's technical assistance during start up.


All incoming materials are insured against ________Correct Answer Damage / lossYour Answer Damage / loss

True/FalseQuestion

Make or buy decision are of common concern to both materials and production department.

Correct Answer True

Your Answer True


Inflammable storage areas should be :-Correct Answer Well insulated

Your Answer Well insulated


The sub system of numerical system involves following :-Correct Answer

Sequential code , Decimal code , Block code systemYour Answer

Sequential code , Decimal code , Block code system



Delay in deliveriesYour Answer

Delay in deliveries


________is reimbursement of actual costs plus fixed fee.Correct Answer

Cost plus fixed feeYour Answer

Cost plus fixed fee


________ is essence of purchase order.Correct Answer

DeliveryYour Answer

Delivery


Performance of product requires :-Correct Answer

Functionality , ReliabilityYour Answer

Functionality , Reliability

True/FalseQuestion

Ex-works means sale is made on rail/truck at the station of dispatch.


Your Answer False

True/FalseQuestion

The trade discount is not allowed as a percentage of published price.Correct Answer

FalseYour Answer

False





Conformance to ________ is checked against component drawings.Correct Answer

DimensionsYour Answer Dimensions


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

Your Answer MRO inventories

True/FalseQuestion

Import substitution in reality should be looked upon as "Import avoidance"Correct Answer

TrueYour Answer

True

True/False







Question Deterioration & Obsolescence cost are similar.


Your Answer True


Customs duty is charged on the imported goods as per ________.Correct Answer

Customs tariff rulesYour Answer

Customs tariff rules


In a contract buyer has right to :-Correct Answer

Examine the goods , Reject the goods delivered in wrong quantity , Reject non conforming goods

Your Answer Examine the goods , Reject the goods delivered in wrong quantity , Sue for

interest of buyer





True/FalseQuestion

Purchasing policies are implemented by framing procedures and rules.Correct Answer

TrueYour Answer

True

True/FalseQuestion

Black bituminous paint should be applied to rubber parts.Correct Answer

FalseYour Answer

False


Pending purchases indent report :-Correct Answer

Highlights indents yet to be converted in to purchase-ordersYour Answer

Highlights indents yet to be converted in to purchase-orders


Correct issues must have :-Correct Answer

Written requisitions , Authorized requisitionsYour Answer

Written requisitions , Authorized requisitions , Name of requisitor




Your Answer Accurate forecasting , Computerization , Increase in lead time





True/FalseQuestion

OEM discount is given by the supplier with a view to widen customer's base.Correct Answer

TrueYour Answer

False






Purchasing and procurement cost reduction is possible through :-Correct Answer

Blanket orders , Green purchasing , System contractingYour Answer

Blanket orders , Green purchasing , System contracting


________ department in almost all companies is the biggest spending department and the custodian of company's purse.

Correct Answer Purchasing

Your Answer Purchasing


________ find their use in identification of raw materials, lubricants, pipelines etc.

Correct Answer Colour codesYour Answer Colour codes


________ is a complex combination of men, machines, materials and tools.Correct Answer ManufacturingYour Answer

Operation


What is the meaning of storekeeping?

Correct Answer Physical storage of goods under custodianship in a systematic manner

Your Answer Physical storage of goods under custodianship in a systematic manner

True/FalseQuestion


TrueYour Answer

True




Your Answer Improprieties of bids








Traffic division is concerned with :-Correct Answer

Arrangement of eco. Transportation of incoming and outgoing materialsYour Answer

Arrangement of eco. Transportation of incoming and outgoing materials


Issue of stock is :-Correct Answer

Process of reacting by storesYour Answer

Process of reacting by stores

True/FalseQuestion


TrueYour Answer

True


Systematic ________of stores is the key to its efficient operation.Correct Answer

LayoutYour Answer

Layout


Foreign trade is controlled by Government for :-Correct Answer

Promoting export &controlling importYour Answer

Promoting export &controlling import


In review system-optional replenishment :-Correct Answer

Reorder level is fixed , Review period is fixedYour Answer

Review period is fixed , Reorder level is fixed


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.Your Answer

To ensure that supplier does not supply more than the quantity stipulated in the purchase order.

True/FalseQuestion

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

TrueYour Answer

False


Finished goods means :-Correct Answer

Goods which are ready to shipYour Answer

Goods which are ready to ship

True/FalseQuestion

JIT purchasing is indirectly the activity of pushing inventory on the suppliers.Correct Answer

TrueYour Answer

True


Quantity discounts are offered when :-Correct Answer

Buyer tempts to produce large quantity , Production is higher & cost is lessYour Answer

Buyer tempts to produce large quantity , Production is higher & cost is less



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

Your 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



Originating department of daily material receipt report is ________.Correct Answer Receiving storeYour Answer

Receiving store


________ is the arrangement of items into groups according to a pre determined pattern.

Correct Answer ClassificationYour Answer Classification


Main information in the bill of material is :-Correct Answer

Part no. , Material specification , Quantity per assemblyYour Answer

Part no. , Material specification , Quantity per assembly



LCLabour cost as considered at the time of contractLabour cost as considered at the time of contract

MAActual material cost as on date.Actual material cost as on date.

MCMaterial cost as considered at the time of contractMaterial cost as considered at the time of contract

LA

Actual labour cost as on dateActual labour cost as on date

Multiple Choice Single AnswerQuestion Heat is :-

Correct Answer An physical agent

Your Answer An physical agent


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

Your Answer Purchase indent

True/FalseQuestion

Coal and coke gas used for power generation and process heating are direct materials.


Your Answer True


In a contract of sale by description the goods sold must be of ________ quality.

Correct Answer MerchantableYour Answer Merchantable

True/FalseQuestion

Annual total cost remain constant though stock-turn over rate changes.Correct Answer

FalseYour Answer

False


Obsolescence cost is :-Correct Answer

Due stock on hand , Part No. / NameYour Answer

Due stock on hand , Cause of the event , Number of turns

True/FalseQuestion


TrueYour Answer

True


In traditional purchasing, quality is confirmed ________.Correct Answer

On receiptYour Answer

On receipt

Question Conformance to ________ is checked against component drawings.

Correct Answer Dimensions

Your Answer Dimensions


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

Your Answer MRO inventories

True/False

Question Import substitution in reality should be looked upon as "Import avoidance"

Correct Answer True

Your Answer True

True/False

Question Deterioration & Obsolescence cost are similar.


Your Answer True

Select The Blank

Question Customs duty is charged on the imported goods as per ________.

Correct Answer Customs tariff rules

Your Answer Customs tariff rules


Question In a contract buyer has right to :-

Correct Answer Examine the goods , Reject the goods delivered in wrong quantity , Reject non conforming goods



Your Answer Examine the goods , Reject the goods delivered in wrong quantity , Sue for interest of buyer

Select The Blank

Question ________ of the department refers to the placement of the department in the structure of the company.



True/False

Question Purchasing policies are implemented by framing procedures and rules.

Correct Answer True

Your Answer True

True/False

Question Black bituminous paint should be applied to rubber parts.


Your Answer False




Question Pending purchases indent report :-

Correct Answer Highlights indents yet to be converted in to purchase-orders

Your Answer Highlights indents yet to be converted in to purchase-orders


Question Correct issues must have :-

Correct Answer Written requisitions , Authorized requisitions

Your Answer Written requisitions , Authorized requisitions , Name of requisitor


Question The following are the actions would help to improve effectiveness of materials planning :-


Your Answer Accurate forecasting , Computerization , Increase in lead time

Select The Blank

Question Systematic, formal and continuous analysis of all factors affect ________ management function is known as Materials research.



True/False

Question OEM discount is given by the supplier with a view to widen customer's base.

Correct Answer True

Your Answer False


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 :-




Question Purchasing and procurement cost reduction is possible through :-

Correct Answer Blanket orders , Green purchasing , System contracting

Your 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.


Your Answer Purchasing

Select The Blank

Question ________ find their use in identification of raw materials, lubricants, pipelines etc.

Correct Answer Colour codes

Your Answer Colour codes

Select The Blank

Question ________ is a complex combination of men, machines, materials and tools.

Correct Answer Manufacturing

Your Answer Operation


Question What is the meaning of storekeeping?

Correct Answer Physical storage of goods under custodianship in a systematic manner

Your Answer Physical storage of goods under custodianship in a systematic manner

True/False

Question Value analysis is the cost reduction technique.

Correct Answer True

Your Answer True


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 :-


Your Answer Improprieties of bids

Match The Following

Question Correct Answer Your Answer

JE Journal Entries Journal Entries

PO Purchase order Purchase order


GRN Goods receipt note Goods receipt note

DN Discrepancy note. Discrepancy note.


Question Traffic division is concerned with :-

Correct Answer Arrangement of eco. Transportation of incoming and outgoing materials

Your Answer Arrangement of eco. Transportation of incoming and outgoing materials


Question Issue of stock is :-

Correct Answer Process of reacting by stores

Your Answer Process of reacting by stores

True/False

Question Cancellation of orders on flimsy ground is unethical.

Correct Answer True

Your Answer True

Select The Blank

Question Systematic ________of stores is the key to its efficient operation.

Correct Answer Layout

Your Answer Layout


Question Foreign trade is controlled by Government for :-

Correct Answer Promoting export &controlling import

Your Answer Promoting export &controlling import


Question In review system-optional replenishment :-

Correct Answer Reorder level is fixed , Review period is fixed

Your Answer Review period is fixed , Reorder level is fixed


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.

Your Answer To ensure that supplier does not supply more than the quantity stipulated in the purchase order.

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

Your Answer False


Question Finished goods means :-

Correct Answer Goods which are ready to ship

Your 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

Your Answer True



Question Quantity discounts are offered when :-

Correct Answer Buyer tempts to produce large quantity , Production is higher & cost is less

Your Answer Buyer tempts to produce large quantity , Production is higher & cost is less


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

Your 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

Your Answer Receiving store

Select The Blank

Question ________ is the arrangement of items into groups according to a pre determined pattern.

Correct Answer Classification

Your Answer Classification


Question Main information in the bill of material is :-

Correct Answer Part no. , Material specification , Quantity per assembly

Your Answer Part no. , Material specification , Quantity per assembly

Match The Following

Question Correct Answer Your Answer

LC Labour cost as considered at the time of contract Labour cost as considered at the time of contract

MA Actual material cost as on date. Actual material cost as on date.

MC Material cost as considered at the time of contract Material cost as considered at the time of contract

LA Actual labour cost as on date Actual labour cost as on date


Question Heat is :-

Correct Answer An physical agent

Your Answer An physical agent


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

Your Answer Purchase indent

True/False

Question Coal and coke gas used for power generation and process heating are direct materials.


Your Answer True

Select The Blank

Question In a contract of sale by description the goods sold must be of ________ quality.

Correct Answer Merchantable

Your Answer Merchantable

True/False

Question Annual total cost remain constant though stock-turn over rate changes.


Your Answer False


Question Obsolescence cost is :-

Correct Answer Due stock on hand , Part No. / Name

Your Answer Due stock on hand , Cause of the event , Number of turns

True/False

Question Single tender system is used when there is only one supplier of the item.

Correct Answer True

Your Answer True

Select The Blank

Question In traditional purchasing, quality is confirmed ________.

Correct Answer On receipt

Your Answer On receipt



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QuestionThe basic materials which have not undergone any conversion since their

receipts from suppliers is :-Correct AnswerRaw materialYour AnswerRaw material

Multiple Choice Single AnswerQuestionHeat is :-

Correct AnswerAn physical agent

Your AnswerAn physical agent


Inventory control system means :-Correct Answer

To achieve basic purpose of inventory creationYour Answer

To achieve basic purpose of inventory creation


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

itemsYour 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/FalseQuestion

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 AnswerTrue

Your AnswerTrue

True/False

QuestionManual inspection is economical when volume of output is small.

Correct AnswerTrue

Your AnswerTrue


Set-up cost is associated with :-Correct Answer

Period , Number of production runsYour Answer

Number of production runs , Machine cost


Stock taking is the responsibility of :-Correct Answer

StoresYour Answer

Stores & purchase



Nut boltsMiscellaneous

Hand toolsTable and chair

Office equipmentOffice equipmentGrinding machineCapital equipmentCapital equipment

RimmerHand tools

Miscellaneous


Standardized containers eliminates ________Correct AnswerTransit damage

Your Answer


Transit damage


What are the forecasting techniques?Correct Answer

Regression analysis , Exponential smoothening , Moving averageYour Answer

Moving average , Regression analysis , Exponential smoothening


Deterioration of rubber parts can be avoided by ________.Correct Answer

Application of French chalkYour Answer

Application of organic chemicals

True/FalseQuestion

No restrictions are on rail transport.Correct Answer

TrueYour Answer

True


Primary function means :-Correct Answer

Basics required to make product worthYour Answer

Basics required to make product worth


A bonnet of motor-car is an ________.Correct Answer

Protection to engineYour Answer

Protection to engine

True/FalseQuestion

Import substitution in reality should be looked upon as "Import avoidance"Correct Answer

TrueYour Answer

True


Quantity discounts are offered when :-Correct Answer

Buyer tempts to produce large quantity , Production is higher & cost is lessYour Answer

Buyer tempts to produce large quantity , Production is higher & cost is less



Stores Dept.Your AnswerStores Dept.


Method suitable for items which are either of purely seasonal is ________.Correct AnswerSeasonal buying

Your AnswerSeasonal buying


Deterioration implies :-Correct Answer

Reduction in value of materialYour Answer

Reduction in value of material


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.Your 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.



Very highYour Answer

Very high


The submission of the final offers by the prospective sources is :-Correct Answer

Firm biddingYour AnswerFirm bidding

True/FalseQuestion

Deterioration & Obsolescence cost are similar.Correct Answer

FalseYour Answer

False


Value analysis speaks about :-Correct Answer

Cost improvement , Improvement in qualityYour Answer

Cost improvement , Improvement in quality


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.Your Answer

To improve capability of purchase department to visualize problems which may be encountered in future. , To provide the enterprise a competitive

edge. , To attain lower efficiency in purchasing activities.


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 AnswerFixed price with predetermination

Your AnswerCost plus percentage of cost.


Constituents of cost analysis are :-Correct Answer

Raw material , Labour costYour Answer

Raw material , Labour cost , Inventory carrying cost


Policies lay down administrative principles utilized in framing procedures and rules is :-

Correct AnswerInternal policies

Your AnswerInternal policies


________ reduce problems of material planning.Correct Answer

Reduction in lead timeYour Answer

Reduction in lead time

True/FalseQuestion

OEM discount is given by the supplier with a view to widen customer's base.Correct Answer

TrueYour Answer

True


The organization set up by FAO & WHO to evolve food standards :-Correct Answer

Codex Alimentarious commissionYour Answer

Codex Alimentarious commission


________ received in the daily mail can also provide information on the vendors of items which the buyer's company is interested in developing.

Correct AnswerCirculars

Your AnswerCirculars

True/FalseQuestion

Master production schedule is not a forecast of demand but is plan for production.

Correct AnswerTrue

Your AnswerTrue

True/FalseQuestion

Reorder quantity in fixed order interval system equal economic order quantity.

Correct AnswerFalse

Your AnswerFalse


In traditional purchasing, quality is confirmed ________.Correct Answer

On receiptYour Answer

At buyer's end


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.Your Answer

To enable indentor to do follow up with the purchase department , To ensure that supplier effects supply of only items ordered on him. , To ensure that

the supplier effect deliveries through the mode of transport asked for by the buyer.


Material requisition means :-Correct Answer

Material request note signed by authorized personYour Answer

Request for material as required

True/FalseQuestion

Make or buy decision are of common concern to both materials and production department.

Correct AnswerTrue

Your AnswerTrue


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.

Your AnswerFormulating & updating a system of stores and coding to items which should

ensure efficient identification & location of goods.




Competitive biddingRight price

Right priceEOQ

Right quantityRight quantity


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

Your AnswerCloth in the manufacture of garment , Wood in the manufacture of furniture ,

Fruits in a canning industry




Your AnswerReduction in downtime by efficient issues , Inventory control , Very less time



What is described in sale of goods Act 1930?Correct Answer

Various rules concerning delivery of goods to be agreed between seller & buyer

Your AnswerVarious rules concerning delivery of goods to be agreed between seller &

buyer


________ is suitable for procurement of prototypes, fixtures, development items.

Correct AnswerCost plus percentage of cost.

Your AnswerFixed price agreements with escalation.


Steel almirahs are used for storage of :-Correct Answer

Expensive items , Scarce itemsYour Answer

Expensive items , Scarce items

True/FalseQuestion

Contract whose object is not lawful are not void.Correct Answer

FalseYour Answer

False



Saturday, December 6, 2008



True/FalseQuestion

Small parcels, Samples, gifts which are received from other countries provisions of import policy & customs not applied on them.


Your Answer False


Correct AnswerYour AnswerDelivery time

As specified in contractWarranties

Essential stipulationsConditions

As per agreement







Collateral stipulationsWarranties

As specified in contractCaveat emptor

Fundamental principle of sale of goodsSale of goods act option


For the inspection of special Cutting tools which department is responsible?Correct Answer

Planning department & inspection departmentYour Answer

Planning department & inspection department

True/FalseQuestion

Black listing may be for a limited period or for an indefinite period.Correct Answer

TrueYour Answer

False


Two-bin system supersedes ________.Correct Answer

Perpetual inventoryYour Answer

Perpetual inventory


Stores functions include :-Correct Answer

Receiving and issuing of materials , Keeping the record , Taking precautions to avoid pilferage, theft

Your Answer Receiving and issuing of materials , Keeping the record , Taking precautions

to avoid pilferage, theft


Analysis of certification correctness of material is required for :-Correct Answer

Bar stock , Castings

Your Answer High risk materials , Liquids



Tender system



Very highYour Answer

Very less


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

Your Answer Goods Receipt Report

True/FalseQuestion

Metals should be stored at least 15-20 cm above the ground.Correct Answer

TrueYour Answer

True

True/FalseQuestion

JIT purchasing is indirectly the activity of pushing inventory on the suppliers.Correct Answer

TrueYour Answer

False


Question Annual total cost is :-

Correct Answer Annual Material Cost + Annual Procurement Cost + Annual ICC

Your Answer Annual Material Cost + Annual Procurement Cost + Annual ICC

True/FalseQuestion

No restrictions are on rail transport.Correct Answer

TrueYour Answer

True


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

Your Answer Greater margin of profit on finished goods , Saving in procurement expenses

as purchases are usually consolidated. , Security against shortages


The purchase of variety of items from single source is called as :-Correct Answer Blanket ordersYour Answer

Blanket orders

True/FalseQuestion

Inventory control technique is suited for low value indirect materials which are economical to procure them in certain pre fixed quantities.

Correct Answer True

Your Answer False


Contracts of A & B class items should have :-Correct Answer

Value engineeringYour Answer Value analysis

True/FalseQuestion

Reorder quantity in fixed order interval system equal economic order quantity.


Your Answer True


Indian railways carry almost ________ goods & passenger traffic.Correct Answer

0.75Your Answer

0.75


The purchasing of Weigh bridge is________Correct Answer

Capital purchasingYour Answer

Import purchasing


Techniques of Simplification :-Correct Answer

Preferred numbers , Frequency analysis , Rationalized codificationYour Answer

Classification , Frequency analysis , Rationalized codification


Correct issues must have :-Correct Answer

Written requisitions , Authorized requisitionsYour Answer

Written requisitions , Authorized requisitions


Question Rejection percentage to be allowed to the vendor depends on the :-

Correct Answer Configuration of component , Number of operations involved , Tolerances

and surface finishesYour Answer

Number of operations involved , Tolerances and surface finishes , Process


One of the major pipe-line in India is ________.Correct Answer

Ankaleshwar - BarodaYour Answer

Barauni - Bajwa





Continuous Stock-taking is effective due to :-Correct Answer

Planned/scheduled activity , Discrepancies are noticed & corrected in short spell

Your Answer Planned/scheduled activity , Discrepancies are noticed & corrected in short

spell , Eliminates material losses


Limited competition is associated with higher price while wider competition enables buying at competitive rates is known as :-

Correct Answer Extent of competition



________ is an addition of unnecessary cost to product

Correct Answer Poor design

Your Answer Poor design


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.Your 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.


How much saving in material cost can give benefit equivalent to eight to nine % rise in sales volume?

Correct Answer 0.01

Your Answer 0.01


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 :-


Your Answer Contract buying


Which type of tendering is adopted when the requirements are urgent?Correct Answer Limited tenderYour Answer

Limited tender

True/FalseQuestion

Continuous stock-taking tends to dislocate the working of store.


Your Answer False

True/FalseQuestion

PO gives full and complete details of the materials to be supplied thereby avoiding ambiguities.

Correct Answer True

Your Answer True


External lead time is :-Correct Answer

Supplier's lead timeYour Answer

Supplier's lead time



SuppliesAbrasive materials

ChemicalsPerishable materials

VegetablesVegetables

Packing materialsCartonCarton

EmptiesMetal containersMetal containers


Primary duties to be performed by purchase department are :-Correct Answer


Your Answer



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

Your Answer Arranging for movement of goods to the transporter's godown , Safe loading

on into the vehicle , Keeping the material in deliverable state


Primary function means :-Correct Answer

Basics required to make product worthYour Answer

Basics required to make product worth


Who act as a link between company's financial department and supplier's for timely payment?Correct Answer


Purchase division


Review system-optional replenishment is a modification of ________.Correct Answer

Fixed-order interval systemYour Answer

Fixed-order interval system


Value analysis job plan contains :-Correct Answer

9 stepsYour Answer

9 steps


Functions of Traffic division :-Correct Answer

Tracing missing consignments , Selecting the right kind of shipping service , Scrutinizing freight bills for payment.

Your Answer Selecting the right kind of shipping service , Scrutinizing freight bills for

payment.


________Inspects the goods & issues a surveyor report certificate.Correct Answer

SurveyorYour Answer

Surveyor


Objectives of material research are :-Correct Answer


resources , To provide the enterprise a competitive edge.Your Answer


resources , To provide the enterprise a competitive edge.

True/FalseQuestion


FalseYour Answer

True

True/FalseQuestion Small parcels, Samples, gifts which are received from othercountries provisions of import policy & customs not applied on them.

Correct Answer FalseYour Answer False


Match The FollowingQuestion Correct Answer Your Answer

Delivery time As specified in contract Warranties

Essential stipulations Conditions As per agreement

Collateral stipulations Warranties As specified in contract

Caveat emptor Fundamental principle of sale of goods Sale of goods actoption

Multiple Choice Single AnswerQuestion For the inspection of special Cutting tools which department

is responsible?Correct Answer Planning department & inspection department

Your Answer Planning department & inspection department

True/FalseQuestion Black listing may be for a limited period or for an

indefinite period.Correct Answer TrueYour Answer False

Select The BlankQuestion Two-bin system supersedes ________.

Correct Answer Perpetual inventoryYour Answer Perpetual inventory

Multiple Choice Multiple AnswerQuestion Stores functions include :-

Correct Answer Receiving and issuing of materials , Keeping therecord , Taking precautions to avoid pilferage, theft

Your Answer Receiving and issuing of materials , Keeping the record ,Taking precautions to avoid pilferage, theft

Multiple Choice Multiple AnswerQuestion Analysis of certification correctness of material is

required for :-Correct Answer Bar stock , Castings

Your Answer High risk materials , Liquids

Select The BlankQuestion ________ is followed in public sector organizations to

identify the lowest potential bidder.Correct Answer Tender system

Your Answer Tender system

Select The BlankQuestion Set-up cost for manufactured item in own plant is ________.

Correct Answer Very highYour Answer Very less

Select The BlankQuestion The ________ is raised by the receiving stores in receipt ofmaterials and after physical verification of the quantity and quality.

Correct Answer Goods Receipt ReportYour Answer Goods Receipt Report

True/FalseQuestion Metals should be stored at least 15-20 cm above the ground.

Correct Answer TrueYour Answer True

True/FalseQuestion JIT purchasing is indirectly the activity of pushing

inventory on the suppliers.Correct Answer TrueYour Answer False

Multiple Choice Single AnswerQuestion Annual total cost is :-

Correct Answer Annual Material Cost + Annual Procurement Cost +Annual ICC

Your Answer Annual Material Cost + Annual Procurement Cost + Annual ICC

True/FalseQuestion No restrictions are on rail transport.

Correct Answer True


Your Answer True

Multiple Choice Multiple AnswerQuestion Advantages of forward buying are :-

Correct Answer Greater margin of profit on finished goods , Savingin procurement expenses as purchases are usually consolidated. , Security

against shortages Your Answer Greater margin of profit on finished goods , Saving in

procurement expenses as purchases are usually consolidated. , Securityagainst shortages

Multiple Choice Single AnswerQuestion The purchase of variety of items from single source is

called as :-Correct Answer Blanket orders

Your Answer Blanket orders

True/FalseQuestion Inventory control technique is suited for low value indirectmaterials which are economical to procure them in certain pre fixed

quantities.Correct Answer TrueYour Answer False

Multiple Choice Single AnswerQuestion Contracts of A & B class items should have :-

Correct Answer Value engineeringYour Answer Value analysis

True/FalseQuestion Reorder quantity in fixed order interval system equal

economic order quantity.Correct Answer False

Your Answer True

Select The BlankQuestion Indian railways carry almost ________ goods & passenger

traffic.Correct Answer 0.75

Your Answer 0.75


Select The BlankQuestion The purchasing of Weigh bridge is________

Correct Answer Capital purchasingYour Answer Import purchasing

Multiple Choice Multiple AnswerQuestion Techniques of Simplification :-

Correct Answer Preferred numbers , Frequency analysis ,Rationalized codification

Your Answer Classification , Frequency analysis , Rationalizedcodification

Multiple Choice Multiple AnswerQuestion Correct issues must have :-

Correct Answer Written requisitions , Authorized requisitions Your Answer Written requisitions , Authorized requisitions

Multiple Choice Multiple AnswerQuestion Rejection percentage to be allowed to the vendor depends on

the :-Correct Answer Configuration of component , Number of operations

involved , Tolerances and surface finishes Your Answer Number of operations involved , Tolerances and surface

finishes , Process

Select The BlankQuestion One of the major pipe-line in India is ________.

Correct Answer Ankaleshwar - BarodaYour Answer Barauni - Bajwa

Select The BlankQuestion GRR are sent from ________.

Correct Answer Stores Dept.Your Answer Stores Dept.

Multiple Choice Multiple AnswerQuestion Continuous Stock-taking is effective due to :-

Correct Answer Planned/scheduled activity , Discrepancies are

noticed & corrected in short spell Your Answer Planned/scheduled activity , Discrepancies are noticed &

corrected in short spell , Eliminates material losses

Multiple Choice Single AnswerQuestion 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 BlankQuestion ________ is an addition of unnecessary cost to product

Correct Answer Poor designYour Answer Poor design

Multiple Choice Multiple AnswerQuestion The alpha numerical system operates as under :-

Correct Answer Each item is identified and is given a properdescription. , Identical items are classified into groups and each group is

provided a suitable heading. , Codes are assigned to the next group, whichare usually the alphabets.

Your 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 usuallythe alphabets.

Multiple Choice Single AnswerQuestion How much saving in material cost can give benefit equivalent

to eight to nine % rise in sales volume?Correct Answer 0.01

Your Answer 0.01

Multiple Choice Single AnswerQuestion The purchasing made under contract , usually formal, of

needed materials, the delivery of which is frequently spread over a periodof time is known as :-

Correct Answer Contract buyingYour Answer Contract buying



Question Which type of tendering is adopted when the requirements areurgent?

Correct Answer Limited tenderYour Answer Limited tender

True/FalseQuestion Continuous stock-taking tends to dislocate the working of

store.Correct Answer False

Your Answer False

True/FalseQuestion PO gives full and complete details of the materials to be

supplied thereby avoiding ambiguities.Correct Answer True

Your Answer True

Multiple Choice Single AnswerQuestion External lead time is :-

Correct Answer Supplier's lead timeYour Answer Supplier's lead time


Supplies Abrasive materials Chemicals

Perishable materials Vegetables Vegetables

Packing materials Carton Carton

Empties Metal containers Metal containers

Multiple Choice Multiple AnswerQuestion Primary duties to be performed by purchase department are :-

Correct Answer Receipts, sorting of purchase indents anddetermination of method of buying , Performance evaluation and feedback ,

Search for suppliers Your Answer Receipts, sorting of purchase indents and determination ofmethod of buying , Performance evaluation and feedback , Search for


suppliers

Multiple Choice Multiple AnswerQuestion In F.O.R. contract seller is responsible for :-

Correct Answer Arranging for movement of goods to the transporter'sgodown , Safe loading on into the vehicle , Keeping the material in

deliverable state Your Answer Arranging for movement of goods to the transporter's godown

, Safe loading on into the vehicle , Keeping the material in deliverablestate

Multiple Choice Single AnswerQuestion Primary function means :-

Correct Answer Basics required to make product worthYour Answer Basics required to make product worth

Multiple Choice Single AnswerQuestion Who act as a link between company's financial department and

supplier's for timely payment?Correct Answer Purchase division

Your Answer Purchase division

Select The BlankQuestion Review system-optional replenishment is a modification of

________.Correct Answer Fixed-order interval system

Your Answer Fixed-order interval system

Multiple Choice Single AnswerQuestion Value analysis job plan contains :-

Correct Answer 9 stepsYour Answer 9 steps

Multiple Choice Multiple AnswerQuestion Functions of Traffic division :-

Correct Answer Tracing missing consignments , Selecting the rightkind of shipping service , Scrutinizing freight bills for payment.

Your Answer Selecting the right kind of shipping service , Scrutinizingfreight bills for payment.


Select The BlankQuestion ________Inspects the goods & issues a surveyor report

certificate.Correct Answer Surveyor

Your Answer Surveyor

Multiple Choice Multiple AnswerQuestion Objectives of material research are :-

Correct Answer To improve capability of purchase department tovisualize problems which may be encountered in future. , To make optimumutilization of available resources , To provide the enterprise a competitive

edge. Your Answer To improve capability of purchase department to visualize

problems which may be encountered in future. , To make optimum utilizationof available resources , To provide the enterprise a competitive edge.

True/FalseQuestion Two bin system is better as compared to perpetual inventory

system.Correct Answer False

Your Answer True





True/False Question

Bulky items impervious to weather is kept at very safe place inside store. Correct Answer

False Your Answer

False

Select The Blank

Question








Petroleum product imports are channealised through________. Correct Answer

Indian oil corporation Your Answer

Indian oil corporation


Question Procurement by more than one firm by pooling their requirements is :-

Correct Answer Cooperative buying

Your Answer Cooperative buying


Question For the inspection of special Cutting tools which department is responsible?

Correct Answer Planning department & inspection department

Your Answer Maintenance department

Match The Following

QuestionCorrect Answer

Your Answer

Vendor ratingRight sourceRight source





Question The cost incurred in providing adequate insurance cover to the materials in

transit and in storage is Correct Answer

Insurance cost Your Answer Insurance cost


Question Import transactions are subject to following additional laws compared to

procurement from sources within the country as :- Correct Answer

Import trade control act ®ulation , Custom act , Central excise Rules 2002 Your Answer

Import trade control act ®ulation , Custom act , Trade policy act 2000

True/False Question

Projects are usually subjected to uncertainty & often delay takes place incompletion of projects which results in cost over runs.

Correct Answer True

Your Answer True

True/False Question

Contract whose object is not lawful are not void. Correct Answer

False Your Answer

False

True/False Question

Shortage chasing is intended to remind the supplier of the due date andobtain advance information of expected delays.

Correct Answer


False Your Answer

False


Question Optimal purchase quantity comprises :-

Correct Answer Annual inventory carrying cost , Annual procurement cost

Your Answer Annual inventory carrying cost , Annual procurement cost , Set-up cost


Question Steel almirahs are used for storage of :-

Correct Answer Expensive items , Scarce items

Your Answer Expensive items , Scarce items , High risk materials


Question Some of the benefits if materials are supplied by the buyer are :-

Correct Answer The supplies of goods are guaranteed especially during the periods of

shortages. , The frequent requests for the price revisions are avoided , Thebuyer is sure of the quality of materials.

Your Answer The buyer is sure of the quality of materials. , The frequent requests forthe price revisions are avoided , The unnecessary profit on materials are

added by the suppliers.


Question The buyers are asked to adopt the following method for follow up :-

Correct Answer Telephone , Letters , E-mail, telegram

Your Answer Telephone , Letters , E-mail, telegram

True/False

Question Stores is the "Safe Custody" for keeping materials

Correct Answer True

Your Answer True


Question Prices of certain commodity may be fixed by the government and thereby

putting a restriction on both buyer and seller is :- Correct Answer

Government restrictions Your Answer

Government restrictions


Question A contract terminates under following condition :-

Correct Answer Discharge by performance , Discharge by Release , Discharge by novation

Your Answer Discharge by performance , Discharge by Release , Discharge by novation

Select The Blank

Question ________ is followed in public sector organizations to identify the lowest

potential bidder. Correct Answer

Tender system Your Answer Tender system

True/False Question

The performance of an equipment can not be verified on the spot if theequipment is not in operation.


Your Answer True

Match The Following

QuestionCorrect Answer

Your Answer

Speculative buyingBulk purchasing

Non perishable items

Capital purchasingPlant and machineryPlant and machinery

Group purchasingHardware materials

Bulk purchasing

Service contractTypewriters

Hardware materials

True/False Question

Metals should be stored at least 15-20 cm above the ground. Correct Answer

True Your Answer

True


Question Costs involved in materials management are

Correct Answer Basic cost of materials , Government tax and levies , Ordering cost

Your Answer Basic cost of materials , Ordering cost , Overhead

Select The Blank

Question ________ of the department refers to the placement of the department in the

structure of the company.



True/False Question

Value analysis is the cost reduction technique. Correct Answer

True Your Answer

True


Question For large engineering firms main store could be sub divided into :-

Correct Answer Finished part store , Raw material store , Semi finished item store

Your Answer Raw material store , Semi finished item store , Finished part store


Question In project procurement what work is covered in detailed engineering stage?

Correct Answer Cross verification of technical specifications & finalisation of commercial

terms Your Answer

Cross verification of technical specifications & finalisation of commercialterms

Select The Blank

Question Sub contracting decisions must be based on outcome of ________ analysis.

Correct Answer Cost benefit

Your Answer Cost benefit


Question

Disadvantages of forward buying are :- Correct Answer

Such a buying may not serve entirely the needs of the production department

, Price expectations if not realised may result in major financial loss tothe firm. , Large scale obsolescence may result if design changes occur.

Your Answer Price expectations if not realised may result in major financial loss to the

firm. , Large scale obsolescence may result if design changes occur.


Question Who act as a link between company's financial department and supplier's for

timely payment? Correct Answer Purchase division Your Answer

Purchase division


Question What is the meaning of stores layout?

Correct Answer Physical arrangement of space for storage material movement, office etcwhich should provide for most efficient receipt storage & issue of material

Your Answer Physical arrangement of space for storage material movement, office etcwhich should provide for most efficient receipt storage & issue of material

True/False Question

If item is manufactured in small quantities, set-up cost is high. Correct Answer

True Your Answer

True

Select The Blank

Question ________is suitable for procurement from non-profit making organization.

Correct Answer Cost plus zero fee

Your Answer Fixed price agreements with escalation.

Select The Blank

Question ________ reduce problems of material planning.

Correct Answer Reduction in lead time

Your Answer Reduction in lead time


Question JIT aims at :-

Correct Answer Reduction in non-value added activities

Your Answer Reduction in non-value added activities


Question Complaints concerning should be made in such a way that negative

reactionsare avoided such as :-




Question Internal factor influencing materials planning:-

Correct Answer Procurement lead times

Your Answer Procurement lead times


Question The cost incurred in movement of materials from suppliers works to buyer's

works is

Correct Answer Freight cost

Your Answer Freight cost

True/False Question

Supplier's delivery ratings should be communicated on periodical basis. Correct Answer

True Your Answer

True

Select The Blank

Question When the costs are balanced, total cost is ________.

Correct Answer Minimum

Your Answer Fixed


Question The process of procurement of raw material, wip, finished goods, jigs,

fixtures and other tools and equipments which are required for the operationand maintenance of a manufacturing plant is known as


Your Answer Store keeping


Question Mechanical tests are performed to :-

Correct Answer Ascertain the strength of materials

Your Answer Ascertain the strength of materials


Question

Set-up cost means :- Correct Answer

Cost incurred to replenish the stock of item manufactured at home plant Your Answer

Cost incurred to replenish the stock of item manufactured at home plant


Question The main responsibility of inventory control division is :-

Correct Answer Fixing inventory levels

Your Answer Fixing inventory levels


Question Special stores are created where :-

Correct Answer Material need to be held under the control of the bank , Material need to be

held for perishable items , Material need to be held for explosive &inflammable items

Your Answer Material need to be held under the control of the bank , Material need to be

held for perishable items , Material need to be held for explosive &inflammable items

Select The Blank

Question ________ is a fundamental form of economical value.

Correct Answer Esteem value

Your Answer Cost value

Select The Blank

Question Discrepancies arising out of theft are tends to ________.

Correct Answer Profit & Loss a/c Your Answer Profit & Loss a/c


Question What is Earnest money?

Correct Answer Fixed amount collected along with Tender

Your Answer Fixed amount collected along with Tender





True/FalseQuestion EOQ model is based on the assumption that unit price is

fixed.Correct Answer TrueYour Answer False

Multiple Choice Multiple AnswerQuestion Obsolescence cost is :-

Correct Answer Due stock on hand , Part No. / Name Your Answer Due stock on hand , Part No. / Name

Multiple Choice Multiple AnswerQuestion Set-up cost comprises of :-

Correct Answer Work-order cost , Idle time cost Your Answer Work-order cost , Idle time cost

Multiple Choice Single AnswerQuestion Quantity discounts reduces :-

Correct Answer Procurement costYour Answer Material cost

Multiple Choice Single AnswerQuestion The document which is prepared by the engineering department

is :-







Correct Answer Bill of materialYour Answer Bill of material

Multiple Choice Single AnswerQuestion Which of the following is not the external factor

influencing materials planning?Correct Answer Corporate objective


Select The BlankQuestion Down time means ________.

Correct Answer Time required by equipment to become OKYour Answer Time required by equipment to become OK

Multiple Choice Single AnswerQuestion Security deposit means :-

Correct Answer Amount as reserve-part kept by scrap contractor forfinal adjustment

Your Answer Amount paid by contractor to company

Multiple Choice Single AnswerQuestion Identifying technical, financial, managerial and quality

assurance capability of the vendors and thereby generate data to serve basisfor preliminary source selection is :-

Correct Answer Source investigation stageYour Answer Source investigation stage

Select The BlankQuestion ________specification are usually flexible and can be

altered during consultation with different manufacturers of the equipment.Correct Answer Equipment

Your Answer Technical

Multiple Choice Single AnswerQuestion Issues to top up supply to pre-fixed levels of items are :-

Correct Answer Imprest issuesYour Answer Imprest issues


Question Requests for price increase are received on account of thefollowing reasons :-

Correct Answer Increase in cost of raw materials and boughtoutparts , Changes in tax structure , Added work content

Your Answer Increase in cost of raw materials and boughtout parts ,Changes in tax structure , Added work content

Select The BlankQuestion Stock held by company represents ________.

Correct Answer MoneyYour Answer Money

Select The BlankQuestion Method suitable for items which are either of purely

seasonal is ________.Correct Answer Seasonal buying

Your Answer Seasonal buying

Multiple Choice Single AnswerQuestion The buying which is received in staggered lots, each lot at

times may equal EOQ is :-Correct Answer Contract buyingYour Answer Schedule buying

Multiple Choice Multiple AnswerQuestion Special advance license for deemed export is granted in

following cases :-Correct Answer Supply of goods against advance license /Remission

scheme , Supply of goods to export oriented units , Supply of capital goodsto holders of licenses under EPCG Scheme

Your Answer Supply of goods against advance license /Remission scheme ,Supply of goods to export oriented units , Supply of capital goods to

holders of licenses under EPCG Scheme

True/FalseQuestion Supplier's request for price increase should be analysed

patiently by the buyer. A curt 'no' or 'negative' reply spoilsrelationships.

Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion Actions involved in sample validation are :-

Correct Answer Follow up with the supplier until sample submission, Sample inspection , Feedback on defects and defect prevention Your Answer Sample inspection , Feedback on defects and defect

prevention

Multiple Choice Multiple AnswerQuestion Special stores are created where :-

Correct Answer Material need to be held under the control of thebank , Material need to be held for perishable items , Material need to be

held for explosive & inflammable items Your Answer Material need to be held for explosive & inflammable items ,

Material need to be held for costly items

Select The BlankQuestion ________ is suitable for procurement of prototypes,

fixtures, development items.Correct Answer Cost plus percentage of cost.

Your Answer Fixed price agreements

Select The BlankQuestion In instantaneous replenishment system, production rate is

________ .Correct Answer InfiniteYour Answer Constant

Multiple Choice Single AnswerQuestion Organization decided to import when :-

Correct Answer Item is not available in the countryYour Answer Item is very critical functioning

Multiple Choice Single AnswerQuestion Operating systems process data for :-Correct Answer Routine operations of the depts.

Your Answer Routine operations of the depts.

Select The BlankQuestion In MRP-1, manufacturing cycle of finished product is

________.Correct Answer LongYour Answer Short


JIT Highly vulnerable to supply failures Purchasing time

TPM Removal of uncertainty Highly vulnerable to supply failures

Quality at source Elimination of incoming inspection Eliminationof incoming inspection

Lower unit cost JIT Quantity of production

True/FalseQuestion Materials department is service department.

Correct Answer TrueYour Answer False

Select The BlankQuestion Malpractices are ________.

Correct Answer Manipulations by stores staffYour Answer Manipulations by stores staff

True/FalseQuestion Value analysis is necessary when company's profits soars.

Correct Answer FalseYour Answer False


Fast moving items Very near to the issue counter Very near to theissue counter

Antibiotics In a air conditioned store In a air conditioned store

Costly items like fuel injector In locked cupboard & away from entrance ofstore. In locked cupboard & away from entrance of store.

Inflammable & hazardous items In a separate store In a separate store

Multiple Choice Multiple AnswerQuestion Discolourisation of soaps is due to :-Correct Answer Exposure to light , Moisture

Your Answer Exposure to light , Moisture

Multiple Choice Multiple AnswerQuestion 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 Your Answer Reduction in downtime by efficient issues , Very less time


Multiple Choice Multiple AnswerQuestion Following special schemes are announced by Indian Government

under which import can be permitted at zero duty or at less duty :-Correct Answer Export promotion capital goods scheme , Diamond

&Jewellary promotion scheme , Import by 100% export oriented units Your Answer Export promotion capital goods scheme , Import by 100%

export oriented units

True/FalseQuestion Post parcel consignments are cleared through customs &

clearance is done through foreign post office.Correct Answer TrueYour Answer False

True/FalseQuestion Number of free days allowed for air consignments is 15 days

from the flight date.Correct Answer False

Your Answer False

True/FalseQuestion The trade discount is not allowed as a percentage of

published price.Correct Answer False

Your Answer False

Multiple Choice Multiple AnswerQuestion Receiving inspector should have to :-

Correct Answer Segregate defectives , Maintain vendor wise qualityrecords

Your Answer Segregate defectives , Maintain vendor wise quality records

Multiple Choice Single AnswerQuestion Supplier may be asked to provide assistance for the first

few days of working so that production losses can be avoided is known as :-Correct Answer Spare part and supply contracts

Your Answer Seller's technical assistance during start up.

Select The BlankQuestion All incoming materials are insured against ________

Correct Answer Damage / lossYour Answer Damage / loss

True/FalseQuestion Make or buy decision are of common concern to both materials

and production department.Correct Answer True

Your Answer True

Multiple Choice Single AnswerQuestion Inflammable storage areas should be :-

Correct Answer Well insulatedYour Answer Well insulated

Multiple Choice Multiple AnswerQuestion The sub system of numerical system involves following :-

Correct Answer Sequential code , Decimal code , Block code system Your Answer Sequential code , Decimal code , Block code system

Multiple Choice Single AnswerQuestion Stock-out is due to :-

Correct Answer Delay in deliveriesYour Answer Delay in deliveries

Select The BlankQuestion ________is reimbursement of actual costs plus fixed fee.

Correct Answer Cost plus fixed feeYour Answer Cost plus fixed fee

Select The BlankQuestion ________ is essence of purchase order.

Correct Answer DeliveryYour Answer Delivery

Multiple Choice Multiple AnswerQuestion Performance of product requires :-

Correct Answer Functionality , Reliability Your Answer Functionality , Reliability

True/FalseQuestion Ex-works means sale is made on rail/truck at the station of

dispatch.Correct Answer False

Your Answer False

True/FalseQuestion The trade discount is not allowed as a percentage of

published price.Correct Answer False

Your Answer False

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