Materials Management - 12

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
 

 
 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

 
 Multiple Choice Single Answer
  Question  
Procurement by more than one firm by pooling their requirements is :-
  Correct Answer  
Cooperative buying
  Your Answer  
Cooperative buying

 
 Multiple Choice Single Answer
  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
Question
Correct Answer
Your Answer

Vendor rating
Right source
Right source

Replenishment method
Right time
Right time

Competitive bidding
Right price
Right price

EOQ
Right quantity
Right quantity

 
 Multiple Choice Single Answer
  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

 
 Multiple Choice Multiple Answer
  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 in
completion 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 and
obtain advance information of expected delays.
  Correct Answer  
False
  Your Answer  
False

 
 Multiple Choice Multiple Answer
  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

 
 Multiple Choice Multiple Answer
  Question  
Steel almirahs are used for storage of :-
  Correct Answer  
Expensive items , Scarce items
  Your Answer  
Expensive items , Scarce items , High risk materials

 
 Multiple Choice Multiple Answer
  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 , 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.

 
 Multiple Choice Multiple Answer
  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

 
 Multiple Choice Single Answer
  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

 
 Multiple Choice Multiple Answer
  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 the
equipment is not in operation.
  Correct Answer  
False
  Your Answer  
True

 
 Match The Following
Question
Correct Answer
Your Answer

Speculative buying
Bulk purchasing
Non perishable items

Capital purchasing
Plant and machinery
Plant and machinery

Group purchasing
Hardware materials
Bulk purchasing

Service contract
Typewriters
Hardware materials

 
 True/False
  Question  
Metals should be stored at least 15-20 cm above the ground.
  Correct Answer  
True
  Your Answer  
True

 
 Multiple Choice Multiple Answer
  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.
  Correct Answer  
Status
  Your Answer  
Location

 
 True/False
  Question  
Value analysis is the cost reduction technique.
  Correct Answer  
True
  Your Answer  
True

 
 Multiple Choice Multiple Answer
  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

 
 Multiple Choice Single Answer
  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 commercial
terms

 
 Select The Blank
  Question  
Sub contracting decisions must be based on outcome of ________ analysis.
  Correct Answer  
Cost benefit
  Your Answer  
Cost benefit

 
 Multiple Choice Multiple Answer
  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 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.

 
 Multiple Choice Single Answer
  Question  
Who act as a link between company's financial department and supplier's for
timely payment?
  Correct Answer  
Purchase division
  Your Answer  
Purchase division

 
 Multiple Choice Single Answer
  Question  
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/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

 
 Multiple Choice Single Answer
  Question  
JIT aims at :-
  Correct Answer  
Reduction in non-value added activities
  Your Answer  
Reduction in non-value added activities

 
 Multiple Choice Multiple Answer
  Question  
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

 
 Multiple Choice Single Answer
  Question  
Internal factor influencing materials planning:-
  Correct Answer  
Procurement lead times
  Your Answer  
Procurement lead times

 
 Multiple Choice Single Answer
  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

 
 Multiple Choice Single Answer
  Question  
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 as
  Correct Answer  
Purchasing
  Your Answer  
Store keeping

 
 Multiple Choice Single Answer
  Question  
Mechanical tests are performed to :-
  Correct Answer  
Ascertain the strength of materials
  Your Answer  
Ascertain the strength of materials

 
 Multiple Choice Single Answer
  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

 
 Multiple Choice Single Answer
  Question  
The main responsibility of inventory control division is :-
  Correct Answer  
Fixing inventory levels
  Your Answer  
Fixing inventory levels

 
 Multiple Choice Multiple Answer
  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

 
 Multiple Choice Single Answer
  Question  
What is Earnest money?
  Correct Answer  
Fixed amount collected along with Tender
  Your Answer  
Fixed amount collected along with Tender