Practice Test

Q1) The most important element of cost is ___ Show Answer

Q2) The function of Purchase Department is ___ Show Answer

Q3) Purchase order is a ___ Show Answer

Q4) Goods received note is normally prepared in ____ Show Answer

Q5) Stock levels are fixed to ____ Show Answer

Q6) Maximum level indicates_____ Show Answer

Q7) EOQ is also known as _____ Show Answer

Q8) Minimum inventory level is ___ Show Answer

Q9) ____ ____ is sent to purchase department. Show Answer

Q10) ____ are issued by purchase department to the suppliers. Show Answer

Q11) Delivery Challan is prepared by the ____ Show Answer

Q12) ___ ___ Note shows materials accepted/rejected/reasons for rejection. Show Answer

Q13) Material Received Note is signed by ____. Show Answer

Q14) ___ ___ shows qty. of material in the Bin. Show Answer

Q15) ___ ___ Note shows transfer of material from one department to another department. Show Answer

Q16) ___ ___ includes inventory control, inventory records, accounting etc. Show Answer

Q17) ABC analysis is a technique of ___ ___ Show Answer

Q18) ____ ratios are calculated to control inventory. Show Answer

Q19) ___ method of pricing results in higher profit. Show Answer

Q20) ____ methods of pricing is useful during the period of inflation. Show Answer

Q21) Under ____ method material purchased last is issued first. Show Answer

Q22) Sales tax is ____ to cost of materials. Show Answer

Q23) Under ____ method stock is valued at current price. Show Answer

Q24) Under ____ method cost is under stated. Show Answer

Q25) Under ___ method, production is charged at current price. Show Answer

Q26) ____ ____ method is incontinent and complicated. Show Answer

Q27) In ____ method when prices are rising cost of material will be at a lower rate. Show Answer

Q28) Under ____ method issue is priced at a latest price. Show Answer

Q29) ____ is the most important element of cost. Show Answer

Q30) The function of purchase department is to ___ ___ Show Answer

Q31) A request to the supporting supply materials is ____ ____ Show Answer

Q32) ____ ____ are fixed to control inventory. Show Answer

Q33) ____ ___ ____ is the minimum stock to be maintained. Show Answer

Q34) Purchase order is signed by ____ ____ Show Answer

Q35) Purchase requisition is _____ Show Answer

Q36) Purchase order is _______ Show Answer

Q37) Material Inspection Note is _____ Show Answer

Q38) Bin Card is _____ Show Answer

Q39) A store ledger is ____ Show Answer

Q40) Bill of materials _____ Show Answer

Q41) Material control includes _____ Show Answer

Q42) Under periodic inventory control _____ Show Answer

Q43) Under perpetual inventory control ______ Show Answer

Q44) ABC Analysis is _____ Show Answer

Q45) Issue of materials during a period of time is priced at the latest purchase cost under ____ Show Answer

Q46) Stores Department maintains a record in which a separate folio is maintained for each item ___ Show Answer

Q47) In times of rising prices, the pricing of issues will be at a more recent current market prices in ____ Show Answer

Q48) The inventory is valued at the most recent market prices and it is near to the valuation based on replacement cost in _____ Show Answer

Q49) According to the method of pricing, issues are close to current economic values _____ Show Answer

Q50) In the method of pricing, cost lag behind the current economic values ____ Show Answer

Q51) When prices fluctuate widely, the method that will smooth out the effect of fluctuation is ____ Show Answer

Q52) In the method, the charge to production is not at actual cost _____ Show Answer

Q53) Purchase order is an order to Stores Department to issue materials. Show Answer

Q54) EOQ is that quantity which is most economical to order. Show Answer

Q55) EOQ is also called as re-order quantity. Show Answer

Q56) Investment in inventory should be optimized by maintaining low stock levels. Show Answer

Q57) Direct materials is the materials which can be directly related to the cost centre. Show Answer

Q58) The stock in hand may exceed the maximum stock level. Show Answer

Q59) Stocks levels are fixed up for inventory control. Show Answer

Q60) In no case, material should go below minimum level. Show Answer

Q61) The objective of scientific purchasing is to procure materials of good quality. Show Answer

Q62) Purchase requisition requests the supplier to supply materials. Show Answer

Q63) Invitation to tender is signed by the Purchase Officer. Show Answer

Q64) Purchase Order is a request to the supplier to send information about materials. Show Answer

Q65) Delivery Challan is an evidence of delivery of materials. Show Answer

Q66) Material Inspection Note is forwarded to the Stores Department. Show Answer

Q67) Bin Card gives information about position of each item. Show Answer

Q68) Stores Ledger shows movement of materials showing quantity and value. Show Answer

Q69) Material Abstract is the analysis of material issued against the material requisitions. Show Answer

Q70) Under Perpetual Inventory System, store balance is ascertained after every receipt and issue of material. Show Answer

Q71) FIFO Method of pricing of materials results in higher profits. Show Answer

Q72) Valuation of closing stock is the same under FIFO and LIFO Method. Show Answer

Q73) Bin Card is the Same as stores ledger. Show Answer

Q74) LIFO and Market Price Method are not same. Show Answer

Q75) If a company wants to maximize net income, it would select FIFO Method. Show Answer

Q76) LIFO Method of pricing issues is useful during the period of inflation. Show Answer

Q77) Weighted Average Method of pricing issues involves adding different prices and dividing by the number of such prices. Show Answer

Q78) Under FIFO Method, materials purchased first are deemed to be issued last. Show Answer

Q79) Under LIFO Method, materials purchased last are deemed to be issued first. Show Answer

Q80) In ABC analysis ‘A’ type of items are __________ Show Answer

Q81) Amount of trade discount is deducted from amount of ________. Show Answer

Q82) Procurement of material of right quality from right source at right time on right time is __________ Show Answer

Q83) ________ of materials is a formal request to the purchase department to procure materials. Show Answer

Q84) For smooth functioning of production _________ of material is essential. Show Answer