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Sample MCQ

The document contains a sample multiple choice question (MCQ) test on inventory management concepts. The 35 questions cover topics like inventory control techniques, economic order quantity, reorder levels, classification and coding, stores ledger, purchase procedures, and average stock calculations. The MCQ addresses fundamental aspects of inventory management systems and processes.

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CHETAN KHAIRNAR
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2K views8 pages

Sample MCQ

The document contains a sample multiple choice question (MCQ) test on inventory management concepts. The 35 questions cover topics like inventory control techniques, economic order quantity, reorder levels, classification and coding, stores ledger, purchase procedures, and average stock calculations. The MCQ addresses fundamental aspects of inventory management systems and processes.

Uploaded by

CHETAN KHAIRNAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Sample MCQ

1. Which of the following is not a technique of Inventory control?

A.ABC Analysis

B. FSN Analysis

C. GOLF Analysis

D. FTMN Analysis

2. _________ is a technique of selective control.

A. Perpetual Inventory system

B. Bill of Material

C. ABC Analysis

D. None of the above

3.  …………………is a record of both quantities and values.

A. Bin Card

B. Stores Ledger

C. Inspection report

D. none

4. Which of the following is not an inventory?

A. Machines

B. Raw material

C. Finished products

D. Consumable tools

5. The minimum stock level is calculated as

A. Reorder level – (Normal consumption x Normal delivery time)

B. Reorder level + (Normal consumption x Normal delivery time)

C. (Reorder level + Normal consumption) x Normal delivery time


D. (Reorder level + Normal consumption) / Normal delivery time

6. Which of the following is true for Inventory control?

A. Economic order quantity has minimum total cost per order

B. Inventory carrying costs increases with quantity per order

C. Ordering cost decreases with lo size

D. All of the above

7. The………………..is maintained by the storekeeper.

A. Bin Card

B. Sales report

C. Production report

D. none

8. …………………..is the organizational head of the stores department.

A. Storekeeper

B. Purchase Manager

C. Stores clerk

D. none

9. ABC analysis deals with_________________?

A. analysis of process chart

B. flow of material

C. ordering schedule of job

D. controlling inventory costs money

10. Re-ordering level is calculated as

A. Maximum consumption rate x Maximum re-order period

B. Minimum consumption rate x Minimum re-order period

C. Maximum consumption rate x Minimum re-order period


D. Minimum consumption rate x Maximum re-order period

11. The time period between placing an order its receipt in stock is known as

A. Lead time

B. Carrying time

C. Shortage time

D. Over time

12. The receipt of…………….is the first step in purchase procedure.

A. Invoice

B. Material requisition

C. Purchase requisition

D. none

13. The following classes of costs are usually involved in inventory decisions except

A. Cost of ordering

B. Carrying cost

C. Cost of shortages

D. Machining cost

14. The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per
unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is

A. 400

B. 440

C. 480

D. 500

15. Maintaining prompt and accurate records of all goods received, issued and returned is the
duty of ……………..*

A. Inspection clerk

B. Goods receiving clerk


C. Storekeeper

D. none

16. Purchase Requisition is a _________ of material.

A. Requirement

B. Purchase return

C. Supply

D. None of the above

17. The average stock level is………….. units if the maximum stock level is 2475 units and the
minimum stock level is 855 units.

A. 1565

B. 1665

C. 1465

D. none

18. The optimum level of inventory is popularly referred to as the ………..

A. Minimum stock level

B. Re-order stock level

C. Economic Order Quantity

D. none

19. The stock level at which the storekeeper initiates purchase requisitions is known as………….

A. Re-order level

B. Danger level

C. Maximum stock level

D. none

20. In the formula of Economic Order Quantity, the alphabet ‘O’ stands for………….

1 point
A. Ordering level

B. Ordering Cost

C. Ordering & Carrying Cost

D. none

21.The ……………..method of codification is generally based on the mnemonic system.

A. Alphabetical

B. Numerical

C. Alpha-Numerical

D. none

22. The stores ledger is maintained by the …………… department.

A. Stores

B. Cost

C. Purchase

D. none

23.The Purchase…………….is a contractual document which authorizes the supplier to supply


the material.

A. Note

B. Requisition

C. Order

D. none

24. ABC Analysis is used in

A. Inventory Management

B. Receivables Management

C. Accounting Policies,

D. Corporate Governance.
25.  ………………..is the procedure for assigning symbols to the material.

A. Classification

B. Codification

C. Centralization

D. none

26. …………… is he grouping of material according to its nature.

A. Classification

B. Codification

C. Centralization

D. none

27. ‘Buffer stock’ is the level of stock

A. Half of the actual stock

B. At which the ordering process should start

C. Minimum stock level below which actual stock should not fall

D. Maximum stock in inventory

28.……………….forms the basis of entries to the stores ledger.

A. Purchase Order

B. Goods Received Note

C. Purchase Requisition

D. none

29.…………………….is a buffer stock level or safety stock level under which the stock should
not be allowed to fall.

A. Average stock level

B. Maximum stock level

C. Minimum stock level


D. none

30. The Economic Order Quantity (EOQ) is calculated as*

1 point

A. (2D*d/h)^1/3

B. Root of 2AO / C

C. COST + Profit = Sales

D. none of the above

31. Proper classification and codification of various items in stores is essential for
efficient…………….. .

A. Record keeping

B. Storage

C. Selling

D. none

32. The cost of insurance and taxes are included in

A. Cost of ordering

B. Set up cost

C. Inventory carrying cost

D. Cost of shortages

33.  Bin Card is _________ .

A. A inspection note

B. A continuous record of stock stored

C. A statement of delivery of materials

D. A statement of issue of material

34.  Economic Order Quantity is he tool for controlling……………….

A. Inventory
B. Labour

C. Expenses

D. none

35. Average stock level can be calculated as

A. Minimum stock level + ½ of Re-order level

B. Maximum stock level + ½ of Re-order level

C. Minimum stock level + 1/3 of Re-order level

D. Maximum stock level + 1/3 of Re-order level

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