Material Management ALL

Material Management_22
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer

Question Procurement cost means :-
Correct Answer Cost incurred to replenish the item
Your Answer Cost incurred to replenish the item
Multiple Choice Multiple Answer

Question Contents of redundancy report are :-
Correct Answer Item code , Stock on hand
Your Answer Stock on hand , Item code

Question A buyer gives wrong idea to his supplier about his requirements
or show a fictitious figure to get some price discount is called as :-
Correct Answer Misrepresentation of facts
Your Answer Misrepresentation of facts

Question Steel almirahs are used for storage of :-
Correct Answer Expensive items , Scarce items
Your Answer Expensive items , Scarce items

Question Stock-out is due to :-
Correct Answer Unusual high demands , Delay in deliveries
Your Answer Unusual high demands , Delay in deliveries

Question Transport cost reduction is attributed to :-
Correct Answer Terms laid down by Buyer
Your Answer Mutual consent of Buyer & Seller

Question Some of the benefits if materials are supplied by the buyer are :-
Correct Answer The buyer is sure of the quality of materials. , The supplies
of goods are guaranteed especially during the periods of shortages. , The
frequent requests for the price revisions are avoided
Your Answer The buyer is sure of the quality of materials. , The supplies of
goods are guaranteed especially during the periods of shortages. , The
frequent requests for the price revisions are avoided
Page 1
Match The Following
Question Correct Answer Your Answer
Small size valuables Post-parcel Post-parcel
Bulky goods in large qty. Rail transport Rail transport
Air transport 100 times costlier than sea transport High cost of operation
Air cargo High cost of operation 100 times costlier than sea transport
True/False
Question Cancellation of orders on flimsy ground is unethical.
Correct Answer True
Your Answer True
True/False
Question Since stock-taking is a check on storekeeper, it should not be
conducted by him.
Correct Answer False
Your Answer True

Question The need to re-classify and shuffle the categories should be kept at
zero is :-
Correct Answer Consistency
Your Answer Consistency
True/False
Question PO gives full and complete details of the materials to be supplied
thereby avoiding ambiguities.
Correct Answer True
Your Answer True

Question The responsibilities of purchase department includes :-
Correct Answer Locating supplier , Image building , Pre delivery follow up
and shortage chasing
Your Answer Locating supplier , Image building , Pre delivery follow up
and shortage chasing
Page 2
Question The threat on the part of supplier to hold supplies until favourable
price decisions is :-
Correct Answer Ability to hold on price
Your Answer Non conformance

Question A document which provides a summary of the price and other
terms of contract extracted from the quotations received from different
suppliers to provide basis for managerial decisions is :-
Correct Answer Comparative statement
Your Answer Comparative statement
Select The Blank

Question Another name for open tender is________.
Correct Answer Unlimited tender
Your Answer Global tender
True/False
Question The pilot lot is checked and tested as per detailed testing and
inspection criteria.
Correct Answer True
Your Answer True
Select The Blank

Question ________ department in almost all companies is the biggest
spending department and the custodian of company's purse.
Correct Answer Purchasing
Your Answer Purchasing

Question Ultrasonic inspection is applied to :-
Correct Answer Detect porosity , Difference in structure & physical
properties
Your Answer Difference in structure & physical properties , Radiography
technique
Select The Blank

Question Two-bin system supersedes ________.
Correct Answer Perpetual inventory
Your Answer Instantaneous system
Page 3
Match The Following
Vendor rating Right source Right source
Replenishment method Right time Right time
Competitive bidding Right price Right price
EOQ Right quantity Right quantity
Select The Blank

Question Inspection methods analyze ________.
Correct Answer Degree of inspection
Your Answer Quality of material

Question The orders, to the extent possible should be avoided is called as :-
Correct Answer Rush
Your Answer Contract
Select The Blank

Question Down time means ________.
Correct Answer Time required by equipment to become OK
Your Answer Time required by equipment to become OK

Question Competitive price information must be treated as confidential and
should not be disclosed to the bidders with an intention of allowing them to
rebid is :-
Correct Answer Improprieties of bids
Your Answer Improprieties of bids

Question Code should be symmetrical :-
Correct Answer Layout of codes
Your Answer Layout of codes
True/False
Question Noting clerk examines bill of entry papers & if found in order
signs the bill of entry.
Page 4
Correct Answer True
Your Answer True

Question Quality of a product is measured in terms of its :-
Correct Answer Heat treatment , Design , Chemical composition
Your Answer Design , Chemical composition
True/False
Question Quotations should not be send in sealed envelopes.
Your Answer False
True/False
Question Malpractices are the manipulations by stores personnel with
active help of outsiders.
Correct Answer True
Your Answer True
Select The Blank

Question ________ is the systematic and continuous analysis of all factors
affecting material function.
Correct Answer Materials research
Your Answer Materials planning

Question A motor-car has :-
Correct Answer Esteem value
Your Answer Functional value

Question MRP-1 concept based on :-
Correct Answer Dependent demand , Independent demand
Your Answer Dependent demand , Independent demand
True/False
Question Value analysis is the cost reduction technique.
Correct Answer True
Your Answer True

Question The buying which is received in staggered lots, each lot at times
Page 5
may equal EOQ is :-
Correct Answer Contract buying
Your Answer Speculative buying
True/False
Question Continuous stock-taking tends to dislocate the working of store.
Your Answer False
Select The Blank

Question Every item in India that crosses Indian borders requires clearance
of ________.
Correct Answer Customs department
Your Answer Customs department
True/False
Question Black listing may be for a limited period or for an indefinite
period.
Correct Answer True
Your Answer True
True/False
Question OEM discount is given by the supplier with a view to widen
customer's base.
Correct Answer True
Your Answer True
Select The Blank

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

Question Analysis of certification correctness of material is required for :-
Correct Answer Bar stock , Castings
Your Answer High risk materials , Liquids

Question Who act as a link between company's financial department and
supplier's for timely payment?
Correct Answer Purchase division
Page 6
Your Answer Purchase division
True/False
Question The trade discount is not allowed as a percentage of published
price.
Your Answer False
Select The Blank

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

Question Narrowing down the choice to those who are most likely to fulfill
the requirements successfully is :-
Correct Answer Preliminary source selection stage
Your Answer Source requirement stage

Question Cutting tools does not include :-
Correct Answer Bearings
Your Answer Bearings

Question In review system-optional replenishment :-
Correct Answer Review period is fixed , Reorder level is fixed
Your Answer Review period is fixed , Review period is fixed
Page 7

Question Goods receipt note also called as :-
Correct Answer Material inward note , Goods inward note ,
Receipt cum inspection advice
Your Answer Material inward note , Goods inward note ,
Receipt cum inspection advice

Question Optimal purchase quantity comprises :-
Correct Answer Annual inventory carrying cost , Annual
procurement cost
Your Answer Annual inventory carrying cost , Annual
procurement cost

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 ________is suitable for procurement from
non-profit making organization.
Correct Answer Cost plus zero fee
Your Answer Cost plus fixed fee
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 Value analysis speaks about :-
Correct Answer Cost improvement , Improvement in quality
Your Answer Improvement in quality , Cost of raw
material
True/False
Question Manual inspection is economical when
volume of output is small.
Correct Answer True
Your Answer True

Question Real creative ideas results :-
Correct Answer When members ventures into impossible
areas
Your Answer When opportunity is given to staff

Question Who Inspects the goods & issues a
certificate for foreign trade?
Correct Answer Surveyor
Your Answer Surveyor
True/False
Question In clean payment type documents are sent
directly to the buyer, bank is not used as an
intermediary for transfer of documents.
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 , Government tax
and levies
True/False
Question Import substitution in reality should be
looked upon as "Import avoidance"
Correct Answer True
Your Answer True

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
Match The Following

Exchange value Tradable product Tradable product
Unnecessary cost Lack of Lack of
standardization standardization
Value analysis Motivation to Motivation to
employees employees
New design Value analysis Value analysis
introduction

Question A formal request to the vendors to submit
their quotations for the items stated therein
is :-
Correct Answer Purchase enquiry
Your Answer Purchase enquiry
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 Government of India is not charging any
additional duty other than customs duty for
imported goods.
Your Answer True
True/False
Question Multiple sampling is an extension of the
double sampling plan.
Correct Answer True
Your Answer False
True/False
Question JIT purchasing is indirectly the activity of
pushing inventory on the suppliers.
Correct Answer True
Your Answer True

Question Annual stock-taking is suitable for :-
Correct Answer Seasonal industries
Your Answer all organisations
True/False
Question In buyer's works, any damage to the goods
while taking them to the stores and/or at the
time of unloading is to buyer's account.
Correct Answer True
Your Answer True

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
Select The Blank

Question Fixed price is applied up to certain part of
the contract and price is finally determined
at an agreed point in the contract is
________
Correct Answer Fixed price with predetermination
Your Answer Fixed price agreements

Question Stock-outs is nothing but :-
Correct Answer Delay in delivery , Consumption is more
than estimated
Your Answer Delay in delivery , Consumption is more
than estimated , Damaged stock
True/False
Question Stores is the "Safe Custody" for keeping
materials
Correct Answer True
Your Answer True

Question Typical examples of direct materials are :-
Correct Answer Cloth in the manufacture of garment , Wood
in the manufacture of furniture , Fruits in a
canning industry
Your Answer Cloth in the manufacture of garment , Wood
in the manufacture of furniture , Fruits in a
canning industry

Question What are the areas of control to improve
profit
Correct Answer Increase units sold , Increase production ,
Reducing capital
Your Answer Increase units sold , Increase production ,
Reducing capital
Select The Blank

Question Right of lien means________.
Correct Answer Right to hold property till debt on it is paid
Your Answer Right to hold property till debt on it is paid
Select The Blank

Question Documents used in receiving materials are
of ________
Correct Answer Four types
Your Answer Four types
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 The cost incurred in movement of materials
from suppliers works to buyer's works is
Correct Answer Freight cost
Your Answer Freight cost

Question Higher price is normally charged for one
time requirement since development,
engineering and tool cost are recovered
from one batch. However if the item is
repetitive, it can be obtained at lower price
is known as :-
Correct Answer Job life
Your Answer Quantity requirements

Question For imports, clearing agents issues :-
Correct Answer Bill of entry
Your Answer Customs invoice

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
True/False
Question Every licence of import is valid for the
period of validity specified in the license.
Correct Answer True
Your Answer True
Question Fixed-order quantity system is a preliminary
of :-
Correct Answer Two-bin system
Your Answer Replenishment system
Match The Following

Rodents Fumigation of Fumigation of stores
stores
IS 1644 Personal hazard, Personal hazard,
fire safety of fire safety of
buildings buildings
Fungi & white ants Fungicides Fungicides
Daily closing stock Key movement Key movement
register register

Question Fixed-order quantity system is an substitute
for :-
Correct Answer Perpetual inventory
Your Answer Continuous stock taking
Select The Blank

Question All incoming materials are insured against
________
Correct Answer Damage / loss
Your Answer Bank gurantee

Question In MRP system :-
Correct Answer Item demand is dependent
Your Answer Item demand is dependent
Question The registration of the firm may be
cancelled and its name may be removed
from the list for following reasons :-
Correct Answer If the firm fails to execute contract
satisfactorily. , If the firm fails to furnish
income tax clearance certificate as required
under the rules. , If the firm runs into loss for
2 consecutive years any time after the first
registration.
Your Answer If the firm fails to execute contract
satisfactorily. , If the firm fails to furnish
income tax clearance certificate as required
under the rules. , If the firm runs into loss for
2 consecutive years any time after the first
registration.

Question Set-up cost is associated with :-
Correct Answer Period , Number of production runs
Your Answer Inventory carrying cost , Machine cost
Select The Blank

Question ________ is never a smooth selling.
Correct Answer Manufacturing
Your Answer Pricing
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 Bonus
Your Answer Bonus
True/False
Question Vendors are not responsible for statutory
approvals from government authorities.
Your Answer True
Select The Blank

Question ________ is a fundamental form of
economical value.
Your Answer Esteem value

Question The materials which cannot be identified
with the individual product and cannot be
charged to the cost of the product is :-
Correct Answer Indirect materials
Your Answer Indirect materials
MATERIALS MANAGEMENT 3Rd semester (Operations)
Multiple Choice Single Answer compensate the supplier for justified cost increases on account of changes
Question: What is Earnest money? in
Correct Answer Fixed amount collected along with Tender
Your Answer Money received from Trading price of raw material, Government. levies, power etc. at the time of
dispatch is
True/False
Question: In contract one cannot buy from or sell goods to himself. ________.
Correct Answer True Correct Answer Fixed price agreements with escalation.
Your Answer False Your Answer Cost plus percentage of cost.
Multiple Choice Multiple Answer Multiple Choice Multiple Answer

Question: Forward buying is best suited for :- Question: Purchasing and procurement cost reduction is possible
Correct Answer Items which have steady and regular consumption , through :-
Basic Correct Answer Blanket orders , Green purchasing , System contracting
Your Answer Blanket orders , Green purchasing , System contracting ,
materials such as coal, steel, coke etc. , Seasonal items Local
Your Answer Perishable items , Items which have steady and regular
purchasing
consumption , Basic materials such as coal, steel, coke etc. , Seasonal items
True/False
Multiple Choice Single Answer Question: Safety stock forms a fixed portion of inventories.
Question: Additional concession given by the seller in non fixed price Correct Answer True
items Your Answer True
are industry wise fixed and hence the seller is not in a position to give any Select The Blank
Question: ________store stocks material hypothecated with banks & to
concession is called as :- stock
Correct Answer Concealed discount
Your Answer Trade discount excisable goods.
Correct Answer Bonded
Multiple Choice Multiple Answer Your Answer Inward
Question: Application for an import license must be signed from :-
Correct Answer Proprietor , Partner of firm , Person duly authorized by True/False
board Question: Turnover discount is usually related to the annual business
and is
of directors of company
Your Answer Proprietor , Partner of firm , Person permitted by custom paid in the form of credit note at the end of the year.
office Correct Answer True
Your Answer True
, Person duly authorized by board of directors of company
Select The Blank
True/False Question: ________ refers to the procurement of the requirements of all
Question: Small parcels, Samples, gifts which are received from other
departments of the firm by a central purchase organization.
countries provisions of import policy & customs not applied on them. Correct Answer Centralisation
Correct Answer False Your Answer Centralisation
Your Answer False
Match The Following Question: Goods receipt note also called as :-
Question: Correct Answer Your Answer Correct Answer Goods inward note , Receipt cum inspection advice ,
Material
Good evaluation system Identification of weak spots Customer satisfaction
inward note
Supply chain management Customer satisfaction Identification of weak Your Answer Receipt cum inspection advice , Material inward note ,
spots
Discrepancy note. , Goods inward note
Cost reduction Annual savings Annual savings
Select The Blank
Codification index Measurement of cost improvement Part of stores Question: Stock-out is nothing but ________.
function Correct Answer Stock get depleted before receipt
Your Answer Organisational failure
Select The Blank Multiple Choice Multiple Answer

Question: A combination of fixed price with a clause to increase price Question: The registration of the firm may be cancelled and its name
to may be
Page no 1 of 19
removed from the list for following reasons :- Question: Stock-out is due to :-
Correct Answer If the firm fails to execute contract satisfactorily. , If Correct Answer Unusual high demands , Delay in deliveries
the Your Answer Unusual high demands , Delay in deliveries , Attitude of
the
firm fails to furnish income tax clearance certificate as required under the
staff , Machine break-down
rules. , If the firm runs into loss for 2 consecutive years any time after the
Match The Following
first registration. Question: Correct Answer Your Answer
Your Answer If the firm is not declared insolvent , If the firm fails to
New design introduction Value analysis Tradable product
execute contract satisfactorily. , If the firm fails to furnish income tax
Exchange value Tradable product Production cost
clearance certificate as required under the rules. , If the firm runs into loss
Unnecessary cost Lack of standardization Lack of standardization
for 2 consecutive years any time after the first registration.
Value analysis Motivation to employees Value analysis
Select The Blank
Question: ________management can assist the procast of
standardization. True/False
Correct Answer Materials Question: Cost of capacity which may be rendered idle if the item
Your Answer Materials currently
Select The Blank being manufactured in purchased needs to be added to the cost to buy.
Question: ________is reimbursement of actual costs plus fixed fee. Correct Answer True
Correct Answer Cost plus fixed fee Your Answer True
Your Answer Fixed price agreements with escalation.
Multiple Choice Single Answer Question: The sub system of numerical system involves following :-
Question: Climatic & environmental agent is :- Correct Answer Decimal code , Block code system , Sequential code
Correct Answer Temperature Your Answer Sequential code , Decimal code , Binary code , Block code
Your Answer Temperature system

Question: ________clause should be inserted in the purchase order of Question: A contract terminates under following condition :-
items Correct Answer Discharge by performance , Discharge by Release ,
Discharge by
critical to project to induce supplier for early completion of the orders.
Correct Answer Bonus novation
Your Answer Bonus Your Answer Discharge by performance , Discharge by Release ,
Discharge by
Question: Mechanical tests are performed to :- Disability , Discharge by novation
Correct Answer Ascertain the strength of materials
Your Answer Ascertain the quality of materials Multiple Choice Single Answer
Question: Instantaneous replenishment means :-
Multiple Choice Single Answer Correct Answer Quantity manufactured as per Work-Order & delivered
Question: What is the identification & location of stock in store? to stores
Correct Answer Formulating & updating a system of stores and coding
to items in full
Your Answer Quantity manufactured is more than Work-Order
which should ensure efficient identification & location of goods.
Your Answer Formulating & updating a system of stores and coding to Multiple Choice Single Answer
items Question: Machinery spares does not include :-
Correct Answer Milling cutters
which should ensure efficient identification & location of goods. Your Answer Milling cutters
True/False Multiple Choice Single Answer

Question: Training of vendors in JIT concepts brings an end to the Question: Higher price is usually charged when the quantity required is
adversarial small.
relationships. Bigger quantities on the other hand give the buyer a leverage to negotiate
Correct Answer True for
Your Answer False
better price is :-
Multiple Choice Multiple Answer Correct Answer Quantity requirements
Page no 2 of 19
Your Answer Quantity requirements cost
Your Answer Basic cost of materials , Government tax and levies ,
True/False Ordering
Question: Surplus items are listed out in descending order of their
value. cost , Overhead
Correct Answer True
Your Answer True Multiple Choice Multiple Answer
Question: Discolourisation of soaps is due to :-
Select The Blank Correct Answer Exposure to light , Moisture
Question: ________ reduce problems of material planning. Your Answer Exposure to light , Moisture , Use of excess chemicals
Correct Answer Reduction in lead time while
Your Answer Reduction in lead time
manufacturing , Keeping in cold
True/False
Question: Ex-works means sale is made on rail/truck at the station of Multiple Choice Single Answer
Question: Stock taking is the responsibility of :-
dispatch. Correct Answer Stores
Correct Answer False Your Answer Stores
Your Answer True
Select The Blank Question: Material intimation note serves as :-
Question: Indian railways carry almost ________ goods & passenger Correct Answer Indentor , Purchase department
traffic. Your Answer Indentor , Purchase department , Stores staff , Entire
Correct Answer 0.75 factory
Your Answer 0.8
Multiple Choice Single Answer Question: Which contract does not specify the quantity but the
Question: Issue of stock is :- contractor is
Correct Answer Process of reacting by stores
Your Answer Important function of stores bound to accept any order which may be placed on him during the contract
period?
Multiple Choice Multiple Answer Correct Answer Rate contracts
Question: Typical examples of direct materials are :- Your Answer Running contracts
Correct Answer Cloth in the manufacture of garment , Wood in the
manufacture True/False
Question: Annual total cost remai n constant though stock-turn over rate
of furniture , Fruits in a canning industry
Your Answer Cloth in the manufacture of garment , Wood in the changes.
manufacture of Correct Answer False
Your Answer False
furniture , Fruits in a canning industry , Coolants used in machines
Select The Blank
Select The Blank Question: JIT is ________
Question: Cost of Stock-taking in Annual method is ________. Correct Answer Continuous improvement
Correct Answer Relatively less Your Answer Technique
Your Answer Very High
Multiple Choice Single Answer LIST OF ATTEMPTED QUESTION: S AND ANSWERS

Question: The point of transfer of ownership rights from seller to buyer
is :-
Correct Answer Place of delivery
Your Answer Place of delivery Multiple Choice Single Answer
Question: The method used for making purchases of proprietary
True/False items is :-
Question: The trade discount is not allowed as a percentage of Correct Answer Single tender
published Your Answer Limited tender
price.
Correct Answer False Multiple Choice Single Answer
Your Answer False Question: Cent per cent inspection is done for :-
Correct Answer Functionally critical parts
Multiple Choice Multiple Answer Your Answer Seasonal items
Question: Costs involved in materials management are
Correct Answer Basic cost of materials , Government tax and levies ,
Ordering Select The Blank
Question: Lower the cycle time, lower is ________
Page no 3 of 19
Correct Answer Inventory
Your Answer Cost
Question: In MRP system :-
Select The Blank Correct Answer Item demand is dependent
Question: ________ reduce problems of material planning. Your Answer There is no stock out
Correct Answer Reduction in lead time
Your Answer Increase in demand
True/False
Question: Single tender system is used when there is only one
Multiple Choice Multiple Answer supplier of
Question: Contents of redundancy report are :-
Correct Answer Item code , Stock on hand the item.
Your Answer Item code , Stock on hand , Number of Reviews Correct Answer True
Your Answer True

Question: The main responsibility of inventory control division is Multiple Choice Multiple Answer
:- Question: Advantages of fixed price agreements are :-
Correct Answer Fixing inventory levels Correct Answer They are easy to administer , They give certainty to the
Your Answer Offering materials to Q.C. for verification of quality.
buyer who knows from the start, amount he has to pay for the
goods/services. ,
Select The Blank
Question: In order to make purchasing effective and to resolve the They protect buyer from possible financial risks from price escalations
allied Your Answer They are easy to administer , They give certainty to the
buyer
problems, there is ________ under the directorate.
Correct Answer Planning and development wing who knows from the start, amount he has to pay for the goods/services. ,
Your Answer Planning and development wing They
protect buyer from possible financial risks from price escalations

True/False
Question: No restrictions are on rail transport.
Correct Answer True Select The Blank
Your Answer False Question: Function which do not contribute to functional value is
called as
Multiple Choice Multiple Answer ________.

Question: In F.O.R. contract seller is responsible for :- Correct Answer Auxiliary function
Correct Answer Arranging for movement of goods to the transporter's Your Answer Relative function
godown , Safe loading on into the vehicle , Keeping the material in

deliverable Select The Blank
Question: ________ is the arrangement of items into groups
state according to a
Your Answer Paying for the local transport , Arranging for
movement of goods pre determined pattern.
Correct Answer Classification
to the transporter's godown , Safe loading on into the vehicle Your Answer Classification
True/False Select The Blank

Question: Consignor & Consignee's name is must for every Question: Conformance to ________ is decided on the basis of
transport mode. tests and
Correct Answer True
Your Answer True trial runs.
Correct Answer Performance
Your Answer Materials specification
Question: Which of the following is not the external factor
influencing Multiple Choice Multiple Answer
Question: Salient features of the working of the price panel are as
materials planning? under
Correct Answer Corporate objective
Your Answer Corporate objective :-
Page no 4 of 19
Correct Answer Usage value above which the panel is to approve of the Your Answer To improve capability of purchase department to
visualize
price is specified. , Vendor development department is required to give cost
problems which may be encountered in future. , To make optimum
break up to the secretary of the price panel , Members of the panel meet to utilization of
scrutinize and discuss the cost aspects. available resources , To provide the enterprise a competitive edge.
Your Answer Usage value above which the panel is to approve of the
price is
True/False
specified. , Vendor development department is required to give cost break Question: Lead time information is required for determination of
up to safety
the secretary of the price panel , Members of the panel meet to scrutinize stock.
and Correct Answer False
Your Answer True
discuss the cost aspects.
Select The Blank

Multiple Choice Single Answer Question: Systematic ________of stores is the key to its efficient
Question: A higher price is usually demanded for the critical
items since operation.
Correct Answer Layout
buyers have lesser options available compared to other items where many Your Answer Layout
alternative sources are available is :-

Correct Answer Quality requirements Multiple Choice Single Answer
Your Answer Quality requirements Question: Annual ICC is formulated as :-
Correct Answer 1/2 q x Cu x I
Your Answer [ q x Cu x i ] 1/2
Question: Good buyer -seller relations provide a good ground for
True/False
negotiation while strained relations make the supplier quote higher is :- Question: Projects are usually subjected to uncertainty & often
Correct Answer Buyer seller relationships delay takes
Your Answer Demand and supply condition
place in completion of projects which results in cost over runs.
Correct Answer True
Multiple Choice Single Answer Your Answer True
Question: Secondary function :-
Correct Answer Do not prevent the product from primary function
Your Answer Prevent the product from primary function Multiple Choice Multiple Answer
Question: Optimal purchase quantity comprises :-
Correct Answer Annual inventory carrying cost , Annual procurement
Multiple Choice Multiple Answer cost
Question: Material Gate-Pass includes :- Your Answer Annual inventory carrying cost , Annual procurement
Correct Answer Description of item , Quantity cost , Basic
Your Answer Description of item , Quantity , Name of the transporter
cost of an item
True/False
Question: Negotiation should end up with an unhappy supplier. Match The Following
Correct Answer False Question: Correct Answer Your Answer
Your Answer False
Rodents Fumigation of stores Chemical treatment
Multiple Choice Multiple Answer IS 1644 Personal hazard, fire safety of buildingsPersonal hazard, fire
Question: Objectives of material research are :-
Correct Answer To improve capability of purchase department to safety of buildings
visualize
utilization of Daily closing stock Key movement register Chemical treatment
available resources , To provide the enterprise a competitive edge.
Page no 5 of 19
Multiple Choice Multiple Answer smallest size to be made, then largest size to be made and then the total no.
Question: The responsibilities of purchase department includes :- of
Correct Answer Locating supplier , Image building , Pre delivery follow
sizes to be made.
up and shortage chasing Correct Answer True
Your Answer Locating supplier , Maintaining records of shortages , Your Answer True
Pre
delivery follow up and shortage chasing Multiple Choice Multiple Answer

Question: Economic disposal of scrap means :-
Correct Answer Use within the organisation , Auction
Select The Blank Your Answer Auction , Disposal at normal price , Disposal at
Question: Wrapping materials are________ materials. profitable price
Correct Answer Packaging
Your Answer Packaging
Question: The four main wings of DGS & D includes the
Multiple Choice Single Answer following :-
Question: Limit gauges are used to verify :- Correct Answer The supplies wing , The inspection wing , The disposal
Correct Answer Whether the product is within the specification
Your Answer Measuring instruments wing
Your Answer The supplies wing , The inspection wing , The control
wing
Select The Blank
Question: Probability theory ensures ________.
Correct Answer Degree of confidence in acceptance of quality Select The Blank
Your Answer Degree of confidence in acceptance of quality Question: Documents used in receiving materials are of ________
Match The Following
Question: Correct Answer Your Answer
Select The Blank
Speculative buying Bulk purchasing Bulk purchasing Question: The buyer, while using ________ tactic, may present
the supplier
Capital purchasing Plant and machinery Non perishable items
with a budgeted price for the product which is much lower than the
Group purchasing Hardware materials Hardware materials supplier's
Service contract Typewriters Plant and machinery quoted price.

Correct Answer Bogies
Your Answer Bogies
True/False
Question: Issue of stock is the process of reacting by stores Multiple Choice Single Answer
management. Question: Capacity cost means :-
Correct Answer True Correct Answer Cost of idle capacity
Your Answer True Your Answer Cost of capacity hired

Question: Internal lead time can be reduced :- Question: A contract is discharged if it is impossible to perform
Correct Answer By selectively delegating the powers , By developing under
local vendor following causes :-

Your Answer By selectively delegating the powers , By better paper- Correct Answer Death of promisee in a contract , Change in legislation ,
work , By
Change in circumstances under which the contract was entered into.
controlling wastage Your Answer Death of promisee in a contract , Change in legislation ,
Change
True/False in circumstances under which the contract was entered into.

Question: A company wishing to use preferred numbers must
decide first the
Question: In instantaneous replenishment system :-
Correct Answer Item consumption demand rate is constant
Page no 6 of 19
Your Answer Item consumption demand rate is constant
Codification index Measurement of cost improvement Part of stores
function
True/False
Question: Maintenance and repair coLIST OF ATTEMPTED
QUESTION: S AND ANSWERS Select The Blank
Question: A combination of fixed price with a clause to increase price
to
dispatch is
True/False

purchasing
True/False
and is
Your Answer True
Select The Blank
Your Answer False
Material
inward note
spots
Page no 7 of 19
Select The Blank True/False
Question: Stock-out is nothing but ________. Question: Training of vendors in JIT concepts brings an end to the
Correct Answer Stock get depleted before receipt adversarial
relationships.
Multiple Choice Multiple Answer Correct Answer True
Question: The registration of the firm may be cancelled and its name Your Answer False
may be
the
Match The Following
Select The Blank

Discharge by
Discharge by
to items in full
Page no 8 of 19
Multiple Choice Single Answer price.
Question: Higher price is usually charged when the quantity required is Correct Answer False
small. Your Answer False
Bigger quantities on the other hand give the buyer a leverage to negotiate Multiple Choice Multiple Answer
for Question: Costs involved in materials management are
better price is :- Ordering
Correct Answer Quantity requirements
True/False Ordering
Correct Answer True
True/False
Your Answer True
Your Answer 0.8
period?
Question: Annual total cost remain constant though stock-turn over rate
Your Answer False
Select The Blank
sts in used equipments are relatively higher.
Multiple Choice Single Answer Correct Answer True
Question: The point of transfer of ownership rights from seller to buyer Your Answer True
is :-
Correct Answer Place of delivery Select The Blank
Your Answer Place of delivery Question: Conformance to ________ is checked against
component drawings.
True/False Correct Answer Dimensions
Question: The trade discount is not allowed as a percentage of Your Answer Dimensions
published
Page no 9 of 19
Multiple Choice Single Answer Question: Black bituminous paint should be applied to rubber
Question: The inventories which refer to the maintenance, repair parts.
Your Answer False
operation supplies which are consumed during process of manufacturing
but do not
become part of the product is :- Question: Pending purchases indent report :-
Correct Answer MRO inventories Correct Answer Highlights indents yet to be converted in to
Your Answer MRO inventories
purchase-orders
Your Answer Highlights indents yet to be converted in to purchase-
True/False orders
Question: Import substitution in reality should be looked upon as
"Import
avoidance" Question: Correct issues must have :-
Correct Answer True Correct Answer Written requisitions , Authorized requisitions
Your Answer True Your Answer Written requisitions , Authorized requisitions , Name of
requisitor
True/False
Question: Deterioration & Obsolescence cost are similar.
Correct Answer False Multiple Choice Multiple Answer
Your Answer True Question: The following are the actions would help to improve
effectiveness
Select The Blank of materials planning :-

Question: Customs duty is charged on the imported goods as per Correct Answer Accurate forecasting , Computerization , Shorter
________.
Correct Answer Customs tariff rules materials plan period
Your Answer Customs tariff rules Your Answer Accurate forecasting , Computerization , Increase in
lead time

Question: In a contract buyer has right to :- Select The Blank
Correct Answer Examine the goods , Reject the goods delivered in Question: Systematic, formal and continuous analysis of all
wrong factors affect
quantity , Reject non conforming goods ________ management function is known as Materials research.
Your Answer Examine the goods , Reject the goods delivered in Correct Answer Materials
wrong quantity Your Answer Materials
, Sue for interest of buyer

True/False
Question: OEM discount is given by the supplier with a view to
Select The Blank widen
Question: ________ of the department refers to the placement of
the customer's base.
Correct Answer True
department in the structure of the company. Your Answer False
Correct Answer Status
Your Answer Location
Question: A buyer gives wrong idea to his supplier about his
True/False requirements
Question: Purchasing policies are implemented by framing
procedures and or show a fictitious figure to get some price discount is called as :-
rules. Your Answer Misrepresentation of facts
Correct Answer True
Your Answer True
Question: Purchasing and procurement cost reduction is possible
True/False through :-
Correct Answer Blanket orders , Green purchasing , System contracting
Page no 10 of 19
Your Answer Blanket orders , Green purchasing , System contracting
DN Discrepancy note. Discrepancy note.
Select The Blank

Question: ________ department in almost all companies is the
biggest Multiple Choice Single Answer
Question: Traffic division is concerned with :-
spending department and the custodian of company's purse. Correct Answer Arrangement of eco. Transportation of incoming and
Your Answer Purchasing outgoing materials
Your Answer Arrangement of eco. Transportation of incoming and
outgoing
Select The Blank
Question: ________ find their use in identification of raw materials
materials,
lubricants, pipelines etc. Multiple Choice Single Answer

Correct Answer Colour codes Question: Issue of stock is :-
Your Answer Colour codes Correct Answer Process of reacting by stores
Your Answer Process of reacting by stores
Select The Blank

Question: ________ is a complex combination of men, machines, True/False
materials and Question: Cancellation of orders on flimsy ground is unethical.
Correct Answer True
tools. Your Answer True
Your Answer Operation
Select The Blank
Question: Systematic ________of stores is the key to its efficient
Question: What is the meaning of storekeeping? operation.
Correct Answer Physical storage of goods under custodianship in a Correct Answer Layout
Your Answer Layout
systematic manner
Your Answer Physical storage of goods under custodianship in a
systematic Multiple Choice Single Answer
Question: Foreign trade is controlled by Government for :-
manner Correct Answer Promoting export &controlling import
Your Answer Promoting export &controlling import
True/False
Question: Value analysis is the cost reduction technique. Multiple Choice Multiple Answer
Correct Answer True Question: In review system-optional replenishment :-
Your Answer True Correct Answer Reorder level is fixed , Review period is fixed
Your Answer Review period is fixed , Reorder level is fixed

Question: Competitive price information must be treated as Multiple Choice Multiple Answer
confidential and 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
rebid is :- quantity
Your Answer Improprieties of bids stipulated in the purchase order. , To ensure that the supplier effect
deliveries
Match The Following through the mode of transport asked for by the buyer.
Question: Correct Answer Your Answer Your Answer To ensure that supplier does not supply more than the
quantity
JE Journal Entries Journal Entries
stipulated in the purchase order.
PO Purchase order Purchase order
GRN Goods receipt note Goods receipt note True/False
Page no 11 of 19
Question: A company wishing to use preferred numbers must Question: ________ is the arrangement of items into groups
decide first the according to a
smallest size to be made, then largest size to be made and then the total no. pre determined pattern.
of Correct Answer Classification
Your Answer Classification
sizes to be made.
Correct Answer True
Your Answer False Multiple Choice Multiple Answer
Question: Main information in the bill of material is :-
Correct Answer Part no. , Material specification , Quantity per assembly
Multiple Choice Single Answer Your Answer Part no. , Material specification , Quantity per assembly
Question: Finished goods means :-
Correct Answer Goods which are ready to ship
Your Answer Goods which are ready to ship Match The Following
True/False LC Labour cost as considered at the time of contract Labour cost as

Question: JIT purchasing is indirectly the activity of pushing
inventory on considered at the time of contract
the suppliers. MA Actual material cost as on date. Actual material cost as on

Correct Answer True date.
Your Answer True
MC Material cost as considered at the time of contractMaterial cost as
Multiple Choice Multiple Answer considered at the time of contract

Question: Quantity discounts are offered when :-
Correct Answer Buyer tempts to produce large quantity , Production is LA Actual labour cost as on date Actual labour cost as on date
higher & cost is less

Your Answer Buyer tempts to produce large quantity , Production is
higher & Multiple Choice Single Answer
Question: Heat is :-
cost is less Correct Answer An physical agent
Your Answer An physical agent

Question: Advantages of fixed price agreements are :- Multiple Choice Single Answer
Correct Answer They are easy to administer , They give certainty to the Question: A formal request to the purchase department, by the
indentor to
goods/services. , procure the items mentioned therein and within the indicated time schedule
is :-
They protect buyer from possible financial risks from price escalations Correct Answer Purchase indent
Your Answer They are easy to administer , They give certainty to the Your Answer Purchase indent
buyer
who knows from the start, amount he has to pay for the goods/services. , True/False
They Question: Coal and coke gas used for power generation and
process heating
are direct materials.
Select The Blank Your Answer True
Question: Originating department of daily material receipt report
is
Select The Blank
________. Question: In a contract of sale by description the goods sold must
Correct Answer Receiving store be of
Your Answer Receiving store
________ quality.
Select The Blank Your Answer Merchantable
Page no 12 of 19
True/False Your Answer True
Question: Annual total cost remain constant though stock-turn
over rate
True/False
changes. Question: Deterioration & Obsolescence cost are similar.
Correct Answer False Correct Answer False
Your Answer False Your Answer True
Multiple Choice Multiple Answer Select The Blank

Question: Obsolescence cost is :- Question: Customs duty is charged on the imported goods as per
Correct Answer Due stock on hand , Part No. / Name ________.
Your Answer Due stock on hand , Cause of the event , Number of Correct Answer Customs tariff rules
turns Your Answer Customs tariff rules
True/False Multiple Choice Multiple Answer

Question: Single tender system is used when there is only one Question: In a contract buyer has right to :-
supplier of Correct Answer Examine the goods , Reject the goods delivered in
wrong
the item.
Correct Answer True quantity , Reject non conforming goods
Your Answer True Your Answer Examine the goods , Reject the goods delivered in
wrong quantity
Select The Blank , Sue for interest of buyer

Question: In traditional purchasing, quality is confirmed
________.
Correct Answer On receipt Select The Blank
Your Answer On receipt Question: ________ of the department refers to the placement of
the
True/False department in the structure of the company.

Question: GRN is an important document between supplier, Correct Answer Status
stores, purchase, Your Answer Location
accounts depts.
Correct Answer True True/False
Your Answer True Question: Purchasing policies are implemented by framing
procedures and
Select The Blank rules.

Question: Conformance to ________ is checked against Correct Answer True
component drawings. Your Answer True
Correct Answer Dimensions
Your Answer Dimensions
True/False
Question: Black bituminous paint should be applied to rubber
Multiple Choice Single Answer parts.
Question: The inventories which refer to the maintenance, repair Correct Answer False
and Your Answer False

but do not Multiple Choice Single Answer
Question: Pending purchases indent report :-
become part of the product is :- Correct Answer Highlights indents yet to be converted in to
Correct Answer MRO inventories
Your Answer MRO inventories purchase-orders
orders
True/False
"Import Multiple Choice Multiple Answer
Question: Correct issues must have :-
avoidance" Correct Answer Written requisitions , Authorized requisitions
Correct Answer True
Page no 13 of 19
Your Answer Written requisitions , Authorized requisitions , Name of Your Answer Colour codes
requisitor
Select The Blank
Question: ________ is a complex combination of men, machines,
Multiple Choice Multiple Answer materials and
Question: The following are the actions would help to improve
effectiveness tools.
of materials planning :- Your Answer Operation
Correct Answer Accurate forecasting , Computerization , Shorter
materials plan period Multiple Choice Single Answer

Your Answer Accurate forecasting , Computerization , Increase in Question: What is the meaning of storekeeping?
lead time Correct Answer Physical storage of goods under custodianship in a
systematic manner
Select The Blank Your Answer Physical storage of goods under custodianship in a
Question: Systematic, formal and continuous analysis of all systematic
factors affect
manner
Your Answer Materials True/False
Question: Value analysis is the cost reduction technique.
Correct Answer True
widen
customer's base. Question: Competitive price information must be treated as
Correct Answer True confidential and
Your Answer False
Multiple Choice Single Answer rebid is :-

Question: A buyer gives wrong idea to his supplier about his Correct Answer Improprieties of bids
requirements Your Answer Improprieties of bids

Correct Answer Misrepresentation of facts Match The Following
Your Answer Misrepresentation of facts Question: Correct Answer Your Answer

Question: Purchasing and procurement cost reduction is possible PO Purchase order Purchase order
through :-
Correct Answer Blanket orders , Green purchasing , System contracting GRN Goods receipt note Goods receipt note
Select The Blank

outgoing
Select The Blank
materials,

Page no 14 of 19
Correct Answer Process of reacting by stores Question: JIT purchasing is indirectly the activity of pushing
Your Answer Process of reacting by stores inventory on
the suppliers.
True/False Correct Answer True
Question: Cancellation of orders on flimsy ground is unethical. Your Answer True
Correct Answer True
Your Answer True
Select The Blank Correct Answer Buyer tempts to produce large quantity , Production is
operation. Your Answer Buyer tempts to produce large quantity , Production is
Correct Answer Layout higher &
Your Answer Layout
cost is less

Question: Foreign trade is controlled by Government for :- Multiple Choice Multiple Answer
Correct Answer Promoting export &controlling import Question: Advantages of fixed price agreements are :-
Your Answer Promoting export &controlling import Correct Answer They are easy to administer , They give certainty to the
Multiple Choice Multiple Answer goods/services. ,
Question: In review system-optional replenishment :-
Correct Answer Reorder level is fixed , Review period is fixed They protect buyer from possible financial risks from price escalations
Your Answer Review period is fixed , Reorder level is fixed Your Answer They are easy to administer , They give certainty to the
buyer
Multiple Choice Multiple Answer who knows from the start, amount he has to pay for the goods/services. ,
Question: The receiving stores copy is used by it :- They
quantity
Select The Blank
stipulated in the purchase order. , To ensure that the supplier effect Question: Originating department of daily material receipt report
deliveries is
through the mode of transport asked for by the buyer. ________.

Your Answer To ensure that supplier does not supply more than the Correct Answer Receiving store
quantity Your Answer Receiving store

Select The Blank
True/False according to a
decide first the pre determined pattern.
smallest size to be made, then largest size to be made and then the total no. Your Answer Classification
of
sizes to be made. Multiple Choice Multiple Answer

Correct Answer True Question: Main information in the bill of material is :-
Your Answer False Correct Answer Part no. , Material specification , Quantity per assembly
Your Answer Part no. , Material specification , Quantity per assembly

Question: Finished goods means :- Match The Following
Correct Answer Goods which are ready to ship Question: Correct Answer Your Answer
Your Answer Goods which are ready to ship
LC Labour cost as considered at the time of contract Labour cost as
True/False considered at the time of contract
Page no 15 of 19
the item.
MA Actual material cost as on date. Actual material cost as on Correct Answer True
date. Your Answer True
MC Material cost as considered at the time of contract Material cost as

Select The Blank
considered at the time of contract Question: In traditional purchasing, quality is confirmed
________.
LA Actual labour cost as on date Actual labour cost as on date Correct Answer On receipt
Your Answer On receipt

Correct Answer An physical agent
True/False
Question: Bulky items impervious to weather is kept at very safe
Multiple Choice Single Answer place
Question: A formal request to the purchase department, by the
indentor to inside store.
procure the items mentioned therein and within the indicated time schedule Your Answer False
is :-
Correct Answer Purchase indent
Your Answer Purchase indent Select The Blank
Question: Petroleum product imports are channealised
through________.
True/False Correct Answer Indian oil corporation
Question: Coal and coke gas used for power generation and Your Answer Indian oil corporation
process heating
are direct materials. Multiple Choice Single Answer

Correct Answer False Question: Procurement by more than one firm by pooling their
Your Answer True requirements
is :-
Select The Blank Correct Answer Cooperative buying
Question: In a contract of sale by description the goods sold must Your Answer Cooperative buying
be of
________ quality. Multiple Choice Single Answer

Correct Answer Merchantable Question: For the inspection of special Cutting tools which
Your Answer Merchantable department is
responsible?
True/False Correct Answer Planning department & inspection department
Question: Annual total cost remain constant though stock-turn Your Answer Maintenance department
over rate
changes. Match The Following

Your Answer False
Multiple Choice Multiple Answer Replenishment method Right time Right time
Question: Obsolescence cost is :-
Correct Answer Due stock on hand , Part No. / Name Competitive bidding Right price Right price
Your Answer Due stock on hand , Cause of the event , Number of
turns EOQ Right quantity Right quantity
True/False
Question: Single tender system is used when there is only one Multiple Choice Single Answer
supplier of
Page no 16 of 19
Question: The cost incurred in providing adequate insurance :-
cover to the Correct Answer The supplies of goods are guaranteed especially during
materials in transit and in storage is the periods of shortages. , The frequent requests for the price revisions are
Your Answer Insurance cost avoided , The buyer is sure of the quality of materials.
Your Answer The buyer is sure of the quality of materials. , The
frequent
Question: Import transactions are subject to following additional requests for the price revisions are avoided , The unnecessary profit on
laws
materials are added by the suppliers.
compared to procurement from sources within the country as :-
Correct Answer Import trade control act ®ulation , Custom act , Central
excise Rules 2002 Question: The buyers are asked to adopt the following method for
Your Answer Import trade control act ®ulation , Custom act , Trade follow up
policy act
:-
2000 Correct Answer Telephone , Letters , E-mail, telegram
Your Answer Telephone , Letters , E-mail, telegram
True/False
Question: Projects are usually subjected to uncertainty & often True/False
delay takes Question: Stores is the "Safe Custody" for keeping materials
Correct Answer True
place in completion of projects which results in cost over runs. Your Answer True
Correct Answer True
Your Answer True
Question: Prices of certain commodity may be fixed by the
True/False government and
Question: Contract whose object is not lawful are not void.
Correct Answer False thereby putting a restriction on both buyer and seller is :-
Your Answer False Correct Answer Government restrictions
Your Answer Government restrictions
True/False
Question: Shortage chasing is intended to remind the supplier of Multiple Choice Multiple Answer
the due Question: A contract terminates under following condition :-
Correct Answer Discharge by performance , Discharge by Release ,
date and obtain advance information of expected delays.
Correct Answer False Discharge by novation
Your Answer False Your Answer Discharge by performance , Discharge by Release ,
Discharge by
Multiple Choice Multiple Answer novation

cost Select The Blank
Your Answer Annual inventory carrying cost , Annual procurement Question: ________ is followed in public sector organizations to
cost , Set-up identify
cost the lowest potential bidder.

Question: Steel almirahs are used for storage of :-
Correct Answer Expensive items , Scarce items True/False
Your Answer Expensive items , Scarce items , High risk materials Question: The performance of an equipment can not be verified
on the spot
Multiple Choice Multiple Answer if the equipment is not in operation.

Question: Some of the benefits if materials are supplied by the Correct Answer False
buyer are Your Answer True
Page no 17 of 19
Your Answer Cross verification of technical specifications &
Match The Following finalisation of
commercial terms
Speculative buying Bulk purchasing Non perishable items
Capital purchasing Plant and machinery Plant and machinery Select The Blank
Question: Sub contracting decisions must be based on outcome of
Group purchasing Hardware materials Bulk purchasing ________
Service contract Typewriters Hardware materials analysis.

Correct Answer Cost benefit
Your Answer Cost benefit
True/False
Question: Metals should be stored at least 15-20 cm above the Multiple Choice Multiple Answer
ground. Question: Disadvantages of forward buying are :-
Correct Answer True Correct Answer Such a buying may not serve entirely the needs of the
Your Answer True
production department , Price expectations if not realised may result in
major
Question: Costs involved in materials management are financial loss to the firm. , Large scale obsolescence may result if design
changes occur.
Ordering cost Your Answer Price expectations if not realised may result in major
Your Answer Basic cost of materials , Ordering cost , Overhead financial
loss to the firm. , Large scale obsolescence may result if design changes
Select The Blank occur.
the
department in the structure of the company. Question: Who act as a link between company's financial
Correct Answer Status department and
True/False Your Answer Purchase division
Correct Answer True
Your Answer True Multiple Choice Single Answer
Question: What is the meaning of stores layout?
Correct Answer Physical arrangement of space for storage material
Question: For large engineering firms main store could be sub movement, office etc which should provide for most efficient receipt
divided into storage &
:- issue of material
Correct Answer Finished part store , Raw material store , Semi finished Your Answer Physical arrangement of space for storage material
movement,
item store
Your Answer Raw material store , Semi finished item store , Finished office etc which should provide for most efficient receipt storage & issue of
part
material
store
True/False
Multiple Choice Single Answer Question: If item is manufactured in small quantities, set-up cost
Question: In project procurement what work is covered in is high.
detailed Correct Answer True
Your Answer True
engineering stage?
Correct Answer Cross verification of technical specifications &
Select The Blank
finalisation of commercial terms
Page no 18 of 19
Question: ________is suitable for procurement from non-profit Correct Answer Purchasing
making Your Answer Store keeping
organization.
Correct Answer Cost plus zero fee Multiple Choice Single Answer
Your Answer Fixed price agreements with escalation. Question: Mechanical tests are performed to :-
Your Answer Ascertain the strength of materials
Select The Blank
Question: ________ reduce problems of material planning.
Correct Answer Reduction in lead time Multiple Choice Single Answer
Your Answer Reduction in lead time Question: Set-up cost means :-
Correct Answer Cost incurred to replenish the stock of item
manufactured
Question: JIT aims at :- at home plant
Correct Answer Reduction in non-value added activities Your Answer Cost incurred to replenish the stock of item
Your Answer Reduction in non-value added activities manufactured at home
plant
Question: Complaints concerning should be made in such a way
that negative Multiple Choice Single Answer
Question: The main responsibility of inventory control division is
reactions are avoided such as :- :-
Correct Answer Delivery failures , Rejection , Shortages Correct Answer Fixing inventory levels
Your Answer Delivery failures , Rejection , Shortages Your Answer Fixing inventory levels
Multiple Choice Single Answer Multiple Choice Multiple Answer

Question: Internal factor influencing materials planning:- Question: Special stores are created where :-
Correct Answer Procurement lead times Correct Answer Material need to be held under the control of the bank ,
Your Answer Procurement lead times
Material need to be held for perishable items , Material need to be held for
Multiple Choice Single Answer explosive & inflammable items

Question: The cost incurred in movement of materials from Your Answer Material need to be held under the control of the bank ,
suppliers works Material
to buyer's works is need to be held for perishable items , Material need to be held for explosive
Correct Answer Freight cost &
inflammable items
True/False
Question: Supplier's delivery ratings should be communicated on Select The Blank
periodical Question: ________ is a fundamental form of economical value.
basis. Your Answer Cost value
Correct Answer True
Your Answer True
Select The Blank
Question: Discrepancies arising out of theft are tends to
Select The Blank ________.
Question: When the costs are balanced, total cost is ________. Correct Answer Profit & Loss a/c
Correct Answer Minimum Your Answer Profit & Loss a/c
Your Answer Fixed

Multiple Choice Single Answer Question: What is Earnest money?
Question: The process of procurement of raw material, wip, Correct Answer Fixed amount collected along with Tender
finished goods, Your Answer Fixed amount collected along with Tender
jigs, fixtures and other tools and equipments which are required for the
operation and maintenance of a manufacturing plant is known as
Page no 19 of 19
True/False
Question Bulky items impervious to weather is kept at
very safe place inside store.
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

Replenishment Right time Right time
method

and in storage is

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.
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.
Your Answer False

procurement cost
procurement cost , Set-up cost

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 , 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.

Question The buyers are asked to adopt the following
method for follow up :-
Correct Answer Telephone , Letters , E-mail, telegram
True/False
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

condition :-
Select The Blank

Question ________ is followed in public sector
organizations to identify the lowest potential
bidder.
True/False
Question The performance of an equipment can not
be verified on the spot if the equipment is
not in operation.
Your Answer True
Match The Following

Speculative buying Bulk purchasing Non perishable
items
Capital purchasing Plant and Plant and machinery
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

are
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
Select The Blank

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

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.

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

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
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

Select The Blank

Question ________ reduce problems of material
planning.

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 reactions are
avoided such as :-
Correct Answer Delivery failures , Rejection , Shortages
Your Answer Delivery failures , Rejection , Shortages

Question Internal factor influencing materials
planning:-
Correct Answer Procurement lead times

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

Your Answer Store keeping

Question Mechanical tests are performed to :-

Question Set-up cost means :-
manufactured at home plant
Your Answer Cost incurred to replenish the stock of item

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
Select The Blank
economical value.
Your Answer Cost value
Select The Blank

to ________.

Question What is Earnest money?
Your Answer Fixed amount collected along with Tender

Your Answer Money received from Trading
True/False
Question In contract one cannot buy from or sell goods to himself.
Correct Answer True
Your Answer False

Question Forward buying is best suited for :-
Correct Answer Items which have steady and regular consumption , Basic materials
such as coal, steel, coke etc. , Seasonal items
Your Answer Perishable items , Items which have steady and regular consumption ,
Basic materials such as coal, steel, coke etc. , Seasonal items

Question Additional concession given by the seller in non fixed price items are
industry wise fixed and hence the seller is not in a position to give any concession is
called as :-
Your Answer Trade discount

Question 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 permitted by custom office , Person
duly authorized by board of directors of company
True/False
Question Small parcels, Samples, gifts which are received from other countries
provisions of import policy & customs not applied on them.
Your Answer False
Match The Following

Supply chain management Customer satisfaction Identification of weak spots

Codification index Measurement of cost improvement Part of stores function
Select The Blank

Question A combination of fixed price with a clause to increase price to compensate
the supplier for justified cost increases on account of changes in price of raw material,
Government. levies, power etc. at the time of dispatch is ________.
Correct Answer Fixed price agreements with escalation.
Your Answer Cost plus percentage of cost.

Question Purchasing and procurement cost reduction is possible through :-
Your Answer Blanket orders , Green purchasing , System contracting , Local
purchasing
True/False
Question Safety stock forms a fixed portion of inventories.
Correct Answer True
Your Answer True
Select The Blank

Question ________store stocks material hypothecated with banks & to stock excisable
goods.
Your Answer Inward
True/False
Question Turnover discount is usually related to the annual business and is paid in the
form of credit note at the end of the year.
Correct Answer True
Your Answer True
Select The Blank

Question ________ refers to the procurement of the requirements of all departments of
the firm by a central purchase organization.
Correct Answer Centralisation
Your Answer Centralisation

Correct Answer Goods inward note , Receipt cum inspection advice , Material inward
note
Your Answer Receipt cum inspection advice , Material inward note , Discrepancy
note. , Goods inward note
Select The Blank

Question Stock-out is nothing but ________.
Correct Answer Stock get depleted before receipt

Question The registration of the firm may be cancelled and its name may be removed
Correct Answer If the firm fails to execute contract satisfactorily. , If the firm fails to
furnish income tax clearance certificate as required under the rules. , If the firm runs into
loss for 2 consecutive years any time after the first registration.
Your Answer If the firm is not declared insolvent , If the firm fails to execute contract
satisfactorily. , If the firm fails to furnish income tax clearance certificate as required
under the rules. , If the firm runs into loss for 2 consecutive years any time after the first
registration.
Select The Blank

Question ________management can assist the procast of standardization.
Select The Blank

Question ________is reimbursement of actual costs plus fixed fee.
Correct Answer Cost plus fixed fee

Question Climatic & environmental agent is :-
Correct Answer Temperature
Your Answer Temperature
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.
Your Answer Bonus

Your Answer Ascertain the quality of materials

Question What is the identification & location of stock in store?
Correct Answer Formulating & updating a system of stores and coding to items which
should ensure efficient identification & location of goods.
Your Answer Formulating & updating a system of stores and coding to items which
True/False
Question Training of vendors in JIT concepts brings an end to the adversarial
relationships.
Correct Answer True
Your Answer False

Your Answer Unusual high demands , Delay in deliveries , Attitude of the staff ,
Machine break-down
Match The Following

True/False
Question 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 True
Your Answer True

Question The sub system of numerical system involves following :-
Correct Answer Decimal code , Block code system , Sequential code
Your Answer Sequential code , Decimal code , Binary code , Block code system

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
Disability , Discharge by novation

Question Instantaneous replenishment means :-
Correct Answer Quantity manufactured as per Work-Order & delivered to stores in full

Question Machinery spares does not include :-
Your Answer Milling cutters

Question Higher price is usually charged when the quantity required is small. Bigger
quantities on the other hand give the buyer a leverage to negotiate for better price is :-
True/False
Question Surplus items are listed out in descending order of their value.
Correct Answer True
Your Answer True
Select The Blank

Question ________ reduce problems of material planning.
True/False
Question Ex-works means sale is made on rail/truck at the station of dispatch.
Your Answer True
Select The Blank

Question Indian railways carry almost ________ goods & passenger traffic.
Correct Answer 0.75
Your Answer 0.8

Question Issue of stock is :-
Your Answer Important function of stores

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
Select The Blank

Question Cost of Stock-taking in Annual method is ________.
Correct Answer Relatively less

Question The point of transfer of ownership rights from seller to buyer is :-
Your Answer Place of delivery
True/False
Question The trade discount is not allowed as a percentage of published price.
Your Answer False

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 , Government tax and levies , Ordering cost ,
Overhead

Question Discolourisation of soaps is due to :-
Correct Answer Exposure to light , Moisture
Your Answer Exposure to light , Moisture , Use of excess chemicals while

Question Stock taking is the responsibility of :-
Correct Answer Stores
Your Answer Stores

Question Material intimation note serves as :-
Correct Answer Indentor , Purchase department
Your Answer Indentor , Purchase department , Stores staff , Entire factory

Question Which contract does not specify the quantity but the contractor is bound to
accept any order which may be placed on him during the contract period?
Correct Answer Rate contracts
Your Answer Running contracts
True/False
Question Annual total cost remain constant though stock-turn over rate changes.
Your Answer False
Select The Blank

Question JIT is ________
Correct Answer Continuous improvement
Your Answer Technique

Question The method used for making purchases of proprietary items is :-
Correct Answer Single tender
Your Answer Limited tender

Question Cent per cent inspection is done for :-
Your Answer Seasonal items
Select The Blank

Question Lower the cycle time, lower is ________
Your Answer Cost
Select The Blank


Your Answer Item code , Stock on hand , Number of Reviews

Question The main responsibility of inventory control division is :-
Select The Blank

Question In order to make purchasing effective and to resolve the allied
Correct Answer Planning and development wing
Your Answer Planning and development wing
True/False
Question No restrictions are on rail transport.
Correct Answer True
Your Answer False

Question In F.O.R. contract seller is responsible for :-
Correct Answer Arranging for movement of goods to the transporter's godown ,

Safe loading on into the vehicle , Keeping the material in
deliverable state
Your Answer Paying for the local transport , Arranging for movement of goods
to the transporter's godown , Safe loading on into the vehicle
True/False
Question Consignor & Consignee's name is must for every transport
mode.
Correct Answer True
Your Answer True

Question Which of the following is not the external factor influencing
materials planning?
Your Answer Corporate objective

Your Answer There is no stock out
True/False
Question Single tender system is used when there is only one supplier of
the item.
Correct Answer True
Your Answer True

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
Select The Blank

Question Function which do not contribute to functional value is called as
________.
Correct Answer Auxiliary function
Your Answer Relative function
Select The Blank

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

Question Conformance to ________ is decided on the basis of tests and
trial runs.

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

Question A higher price is usually demanded for the critical items since
buyers have lesser options available compared to other items
where many alternative sources are available is :-
Correct Answer Quality requirements
Your Answer Quality requirements

Question Good buyer -seller relations provide a good ground for
negotiation while strained relations make the supplier quote
higher is :-
Correct Answer Buyer seller relationships

Question Secondary function :-
Your Answer Prevent the product from primary function

Question Material Gate-Pass includes :-
Correct Answer Description of item , Quantity
True/False
Question Negotiation should end up with an unhappy supplier.
Your Answer False

Question Objectives of material research are :-
Correct Answer To improve capability of purchase department to visualize

problems which may be encountered in future. , To make
optimum utilization of available resources , To provide the
enterprise a competitive edge.
Your Answer To improve capability of purchase department to visualize
problems which may be encountered in future. , To make
optimum utilization of available resources , To provide the
enterprise a competitive edge.
True/False
Question Lead time information is required for determination of safety
stock.
Your Answer True
Select The Blank

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

Question Annual ICC is formulated as :-
True/False
Question Projects are usually subjected to uncertainty & often delay takes
Correct Answer True
Your Answer True

Correct Answer Annual inventory carrying cost , Annual procurement cost
Your Answer Annual inventory carrying cost , Annual procurement cost , Basic
cost of an item
Match The Following

IS 1644 Personal hazard, fire Personal hazard, fire

safety of buildings safety of buildings
Daily closing stock Key movement register Chemical treatment

Correct Answer Locating supplier , Image building , Pre delivery follow up and
shortage chasing
Your Answer Locating supplier , Maintaining records of shortages , Pre
delivery follow up and shortage chasing
Select The Blank

Question Wrapping materials are________ materials.

Question Limit gauges are used to verify :-
Your Answer Measuring instruments
Select The Blank

Question Probability theory ensures ________.
Correct Answer Degree of confidence in acceptance of quality
Your Answer Degree of confidence in acceptance of quality
Match The Following

Speculative buying Bulk purchasing Bulk purchasing
Group purchasing Hardware materials Hardware materials
Service contract Typewriters Plant and machinery
True/False
Question Issue of stock is the process of reacting by stores management.
Correct Answer True
Your Answer True

Question Internal lead time can be reduced :-
Correct Answer By selectively delegating the powers , By developing local
vendor
Your Answer By selectively delegating the powers , By better paper-work , By
controlling wastage
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 True

Question Economic disposal of scrap means :-
Your Answer Auction , Disposal at normal price , Disposal at profitable price

Question The four main wings of DGS & D includes the following :-
Correct Answer The supplies wing , The inspection wing , The disposal wing
Your Answer The supplies wing , The inspection wing , The control wing
Select The Blank

Question Documents used in receiving materials are of ________
Select The Blank

Question The buyer, while using ________ tactic, may present the
supplier with a budgeted price for the product which is much
lower than the supplier's quoted price.
Your Answer Bogies

Question Capacity cost means :-
Correct Answer Cost of idle capacity
Your Answer Cost of capacity hired

Question A contract is discharged if it is impossible to perform under
following causes :-
Correct Answer Death of promisee in a contract , Change in legislation , Change
in circumstances under which the contract was entered into.
Your Answer Death of promisee in a contract , Change in legislation , Change
in circumstances under which the contract was entered into.

Question In instantaneous replenishment system :-
True/False
Question Maintenance and repair costs in used equipments are relatively
higher.
Correct Answer True
Your Answer True
True/False
Question GRN is an important document between supplier, stores,
purchase, accounts depts.
Correct Answer True
Your Answer True


True/False
Correct Answer True
Your Answer False

Correct Answer Items which have steady and regular consumption , Basic materials
Your Answer Perishable items , Items which have steady and regular consumption ,
Basic materials such as coal, steel, coke etc. , Seasonal items

Question Additional concession given by the seller in non fixed price items are
industry wise fixed and hence the seller is not in a position to give any concession is
called as :-

Your Answer Proprietor , Partner of firm , Person permitted by custom office , Person
duly authorized by board of directors of company
True/False
Question Small parcels, Samples, gifts which are received from other countries
provisions of import policy & customs not applied on them.
Your Answer False
Match The Following


Select The Blank

Question A combination of fixed price with a clause to increase price to compensate
the supplier for justified cost increases on account of changes in price of raw material,
Government. levies, power etc. at the time of dispatch is ________.

Your Answer Blanket orders , Green purchasing , System contracting , Local
purchasing
True/False
Correct Answer True
Your Answer True
Select The Blank

Question ________store stocks material hypothecated with banks & to stock excisable
goods.
Your Answer Inward
True/False
Question Turnover discount is usually related to the annual business and is paid in the
form of credit note at the end of the year.
Correct Answer True
Your Answer True
Select The Blank

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

Correct Answer Goods inward note , Receipt cum inspection advice , Material inward
note
Your Answer Receipt cum inspection advice , Material inward note , Discrepancy
note. , Goods inward note
Select The Blank


Question The registration of the firm may be cancelled and its name may be removed
Correct Answer If the firm fails to execute contract satisfactorily. , If the firm fails to
furnish income tax clearance certificate as required under the rules. , If the firm runs into
Your Answer If the firm is not declared insolvent , If the firm fails to execute contract
satisfactorily. , If the firm fails to furnish income tax clearance certificate as required
under the rules. , If the firm runs into loss for 2 consecutive years any time after the first
registration.
Select The Blank

Select The Blank


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.
Your Answer Bonus


Correct Answer Formulating & updating a system of stores and coding to items which
Your Answer Formulating & updating a system of stores and coding to items which
True/False
Question Training of vendors in JIT concepts brings an end to the adversarial
relationships.
Correct Answer True
Your Answer False

Your Answer Unusual high demands , Delay in deliveries , Attitude of the staff ,
Machine break-down
Match The Following

True/False
Question 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 True
Your Answer True


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

Correct Answer Quantity manufactured as per Work-Order & delivered to stores in full


Question Higher price is usually charged when the quantity required is small. Bigger
quantities on the other hand give the buyer a leverage to negotiate for better price is :-
True/False
Correct Answer True
Your Answer True
Select The Blank

True/False
Your Answer True
Select The Blank

Correct Answer 0.75
Your Answer 0.8


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
Select The Blank


True/False
Your Answer False

Your Answer Basic cost of materials , Government tax and levies , Ordering cost ,
Overhead


Your Answer Stores


Question Which contract does not specify the quantity but the contractor is bound to
accept any order which may be placed on him during the contract period?
True/False
Your Answer False
Select The Blank

Select The Blank
Question Conformance to ________ is checked against component drawings.

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 :-
Your An swer 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
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 :-
Correct Answer Accurate forecasting , Computerization , Shorter materials plan period
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 :-

Select The Blank

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

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
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 :-
Match The Following

GRN Goods receipt note Goods receipt 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

True/False
Correct Answer True
Your An swer True
Select The Blank

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

Question Foreign trade is controlled by Government for :-
Correct Answer Promoting export &controlling import

Correct Answer Reorder level is fixed , Review period 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 :-
True/False
Question JIT purchasing is indirectly the activity of pushing inventory on the suppliers.
Correct Answer True
Your Answer True

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

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
Select The Blank

Question Originating department of daily material receipt report is ________.
Correct Answer Receiving store
Select The Blank

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

Question Main information in the bill of material is :-
Match The Following

LC Labour cost as considered at the Labour cost as considered at the

time of contract time of contract
MA Actual material cost as on date. Actual material cost as on date.
MC Material cost as considered at Material cost as considered at the

the time of contract time of contract
LA Actual labour cost as on date Actual labour cost as on date

Question Heat is :-

Question A formal request to the purchase department, by the indentor to procure the items
mentioned therein and within the indicated time schedule is :-
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.
True/False
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

Select The Blank

product is :-
True/False
Correct Answer True
Your Answer True
True/False
Your Answer True
Select The Blank


conforming goods
of buyer
Select The Blank

True/False
Correct Answer True
Your Answer True
True/False
Your Answer False



planning :-
Select The Blank

True/False
Correct Answer True
Your Answer False


Select The Blank

Select The Blank

Select The Blank


True/False
Correct Answer True
Your Answer True

Match The Following



True/False
Correct Answer True
Your An swer True
Select The Blank

Your Answer Layout



by the buyer.
purchase order.
True/False
Correct Answer True
Your Answer False

True/False
Correct Answer True
Your Answer True


Select The Blank

Select The Blank

pattern.

Match The Following




Question Heat is :-

True/False
materials.
Your Answer True
Select The Blank

True/False
Your Answer False

True/False
Correct Answer True
Your Answer True
Select The Blank


True/False
Question Bulky items impervious to weather is kept at
very safe place inside store.
Your Answer False
Select The Blank

Question Petroleum product imports are
channealised through________.

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

Question For the inspection of special Cutting tools
which department is responsible?
Correct Answer Planning department & inspection
department
Match The Following

Replenishment Right time Right time
method

and in storage is

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.
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.
Your Answer False

procurement cost
procurement cost , Set-up cost

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 , 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.

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

condition :-
Select The Blank

Question ________ is followed in public sector
organizations to identify the lowest potential
bidder.
True/False
Question The performance of an equipment can not
be verified on the spot if the equipment is
not in operation.
Your Answer True
Match The Following

Speculative buying Bulk purchasing Non perishable
items
Capital purchasing Plant and Plant and machinery
machinery
True/False
Question Metals should be stored at least 15-20 cm
above the ground.
Correct Answer True
Your Answer True

are
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
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
Your Answer Cross verification of technical specifications
Select The Blank

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

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.

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

Correct Answer Physical arrangement of space for storage
issue of material
Your Answer Physical arrangement of space for 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

Select The Blank

Question ________ reduce problems of material
planning.


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

Question Internal factor influencing materials
planning:-

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
________.
Your Answer Fixed




Question The main responsibility of inventory control
division is :-

Correct Answer Material need to be held under the control
Your Answer Material need to be held under the control
Select The Blank
economical value.
Select The Blank

to ________.

dispatch is
True/False

purchasing
True/False
and is
Your Answer True
Select The Blank
Your Answer False
Material
inward note
spots
Select The Blank

to may be
Page no 1 of 19
the
Match The Following
Select The Blank

Discharge by
Discharge by
to items in full

adversarial small.
Your Answer False
better price is :-
Page no 2 of 19
True/False Ordering
Correct Answer True
True/False
Your Answer True
Your Answer 0.8
period?
Question: Annual total cost remai n constant though stock-turn over rate
Your Answer False
Select The Blank

is :-
price.
Page no 3 of 19
Your Answer Cost
True/False
Your Answer True

goods/services. ,
Select The Blank
buyer

True/False
called as



Correct Answer True
Page no 4 of 19
visualize
price is
True/False
up to safety
Your Answer True
Select The Blank


True/False
Correct Answer True
cost of an item
True/False
Your Answer False
Multiple Choice Multiple Answer IS 1644 Personal hazard, fire safety of buildingsPersonal hazard, fire
visualize
Page no 5 of 19
sizes to be made.
Pre

wing
Select The Blank
Match The Following
Select The Blank
the supplier

Your Answer Bogies
True/False


work , By
Change

decide first the
Page no 6 of 19
function
True/False
to
dispatch is
True/False

purchasing
True/False
and is
Your Answer True
Select The Blank
Your Answer False
Material
inward note
spots
Page no 7 of 19
relationships.
may be
the
Match The Following
Select The Blank

Discharge by
Discharge by
to items in full
Page no 8 of 19
True/False Ordering
Correct Answer True
True/False
Your Answer True
Your Answer 0.8
period?
Your Answer False
Select The Blank
is :-
component drawings.
published
Page no 9 of 19
Your Answer False
but do not
purchase-orders
True/False orders
"Import
requisitor
True/False
effectiveness

________.
lead time


True/False
Correct Answer True
Correct Answer True
Your Answer True
Page no 10 of 19
Select The Blank

outgoing
Select The Blank
materials,

Select The Blank

Correct Answer True
Select The Blank
Your Answer Layout
systematic manner
True/False

deliveries
quantity
Page no 11 of 19
sizes to be made.
Correct Answer True


Your Answer True
MC Material cost as considered at the time of contractMaterial cost as



indentor to
is :-
buyer
process heating
is
Select The Blank
________ quality.
Page no 12 of 19
over rate
True/False


wrong
the item.
wrong quantity

________.
the

accounts depts.
procedures and

True/False

orders
True/False
Correct Answer True
Page no 13 of 19
requisitor
Select The Blank

systematic manner
factors affect
manner
Correct Answer True
widen
Your Answer False



through :-
Select The Blank

outgoing
Select The Blank
materials,

Page no 14 of 19
the suppliers.
Correct Answer True
Your Answer True
Your Answer Layout
cost is less

buyer
quantity
Select The Blank
deliveries is


Select The Blank
of


Page no 15 of 19
the item.

Select The Blank
________.

True/False
is :-
through________.
process heating

is :-
be of

responsible?
over rate

Your Answer False
True/False
supplier of
Page no 16 of 19
frequent
laws
policy act
:-
True/False
Correct Answer True
Correct Answer True
Your Answer True
True/False
Discharge by


on the spot

Page no 17 of 19
commercial terms

True/False
Your Answer True
major
changes occur.
the
Correct Answer True
movement,
item store
part
material
store
True/False
Your Answer True
engineering stage?
Select The Blank
Page no 18 of 19
organization.
Select The Blank
manufactured
plant


inflammable items
True/False
Correct Answer True
Your Answer True
Select The Blank
Your Answer Fixed

Page no 19 of 19

True/False
Correct Answer True
Your Answer False

Correct Answer Items which have steady and regular consumption , Basic
materials such as coal, steel, coke etc. , Seasonal items

Question Additional concession given by the seller in non fixed price items
are industry wise fixed and hence the seller is not in a position to give any
concession is called as :-

Correct Answer Proprietor , Partner of firm , Person duly authorized by
board of directors of company
Your Answer Proprietor , Partner of firm , Person permitted by custom
office , Person duly authorized by board of directors of company
True/False
Question Small parcels, Samples, gifts which are received from other
countries provisions of import policy & customs not applied on them.
Your Answer False
Match The Following

Page 1
Select The Blank

Question A combination of fixed price with a clause to increase price to
compensate the supplier for justified cost increases on account of changes in
price of raw material, Government. levies, power etc. at the time of dispatch is
________.

Local purchasing
True/False
Correct Answer True
Your Answer True
Select The Blank

Question ________store stocks material hypothecated with banks & to
stock excisable goods.
Your Answer Inward
True/False
Question Turnover discount is usually related to the annual business and is
paid in the form of credit note at the end of the year.
Correct Answer True
Your Answer True
Select The Blank

Question ________ refers to the procurement of the requirements of all
Page 2

Correct Answer Goods inward note , Receipt cum inspection advice ,
Material inward note
Your Answer Receipt cum inspection advice , Material inward note ,
Select The Blank


Question The registration of the firm may be cancelled and its name may be
removed from the list for following reasons :-
Correct Answer If the firm fails to execute contract satisfactorily. , If the
rules. , If the firm runs into loss for 2 consecutive years any time after the first
registration.
Your Answer If the firm is not declared insolvent , If the firm fails to execute
contract satisfactorily. , If the firm fails to furnish income tax clearance
certificate as required under the rules. , If the firm runs into loss for 2
consecutive years any time after the first registration.
Select The Blank


Select The Blank


Page 3
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.
Your Answer Bonus


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
True/False
Question Training of vendors in JIT concepts brings an end to the
adversarial relationships.
Correct Answer True
Your Answer False

Your Answer Unusual high demands , Delay in deliveries , Attitude of the
Match The Following


Page 4
True/False
Question 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 True
Your Answer True

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

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

Correct Answer Quantity manufactured as per Work-Order & delivered to
stores in full


Question Higher price is usually charged when the quantity required is
small. Bigger quantities on the other hand give the buyer a leverage to
negotiate for better price is :-
True/False
Correct Answer True
Page 5
Your Answer True
Select The Blank

True/False
Question Ex-works means sale is made on rail/truck at the station of
dispatch.
Your Answer True
Select The Blank

Question Indian railways carry almost ________ goods & passenger
traffic.
Correct Answer 0.75
Your Answer 0.8


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 , Coolants used in
machines
Select The Blank


Page 6
True/False
price.
Your Answer False

Ordering cost
Your Answer Basic cost of materials , Government tax and levies , Ordering
cost , Overhead


Your Answer Stores


Question Which contract does not specify the quantity but the contractor is
bound to accept any order which may be placed on him during the contract
period?
True/False
Question Annual total cost remain constant though stock-turn over rate
changes.
Your Answer False
Page 7
Select The Blank

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

Select The Blank

Your Answer Cost
Select The Blank



Question The main responsibility of inventory control division is
Page 8
:-
Select The Blank

Question In order to make purchasing effective and to resolve the
allied problems, there is ________ under the directorate.
True/False
Correct Answer True
Your Answer False

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
True/False
Question Consignor & Consignee's name is must for every
transport mode.
Correct Answer True
Your Answer True

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

Page 9
True/False
Question Single tender system is used when there is only one
supplier of the item.
Correct Answer True
Your Answer True

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
Select The Blank

Question Function which do not contribute to functional value is
called as ________.
Select The Blank

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

Question Conformance to ________ is decided on the basis of
tests and trial runs.
Page 10

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

Question A higher price is usually demanded for the critical items
since buyers have lesser options available compared to other items where
many alternative sources are available is :-

Question Good buyer -seller relations provide a good ground for
negotiation while strained relations make the supplier quote higher is :-


True/False
Page 11
Your Answer False

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 make optimum
utilization of available resources , To provide the enterprise a competitive
edge.
True/False
Question Lead time information is required for determination of
safety stock.
Your Answer True
Select The Blank

operation.
Your Answer Layout

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
Page 12

cost
Your Answer Annual inventory carrying cost , Annual procurement
cost , Basic cost of an item
Match The Following

IS 1644 Personal hazard, fire safety of buildings Personal hazard, fire

safety of buildings

up and shortage chasing
Your Answer Locating supplier , Maintaining records of shortages ,
Pre delivery follow up and shortage chasing
Select The Blank


Page 13
Select The Blank

Match The Following

Capital purchasing Plant and machineryNon perishable items
True/False
Question Issue of stock is the process of reacting by stores
management.
Correct Answer True
Your Answer True

Correct Answer By selectively delegating the powers , By developing
local vendor
Your Answer By selectively delegating the powers , By better
paper-work , By controlling wastage
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 True
Page 14

Your Answer Auction , Disposal at normal price , Disposal at
profitable price

Question The four main wings of DGS & D includes the following
:-
Correct Answer The supplies wing , The inspection wing , The disposal
wing
wing
Select The Blank

Question Documents used in receiving materials are of
________
Select The Blank

Question The buyer, while using ________ tactic, may present
the supplier with a budgeted price for the product which is much lower than
the supplier's quoted price.
Your Answer Bogies


Question A contract is discharged if it is impossible to perform
under following causes :-
Page 15
Correct Answer Death of promisee in a contract , Change in legislation ,
Your Answer Death of promisee in a contract , Change in legislation ,

True/False
Question Maintenance and repair coLIST OF ATTEMPTED
QUESTIONS AND ANSWERS

True/False
Correct Answer True
Your Answer False

Correct Answer Items which have steady and regular consumption , Basic
materials such as coal, steel, coke etc. , Seasonal items

Question Additional concession given by the seller in non fixed price items
are industry wise fixed and hence the seller is not in a position to give any
concession is called as :-

Page 16
Correct Answer Proprietor , Partner of firm , Person duly authorized by
Your Answer Proprietor , Partner of firm , Person permitted by custom
office , Person duly authorized by board of directors of company
True/False
Question Small parcels, Samples, gifts which are received from other
countries provisions of import policy & customs not applied on them.
Your Answer False
Match The Following

Select The Blank

compensate the supplier for justified cost increases on account of changes in
price of raw material, Government. levies, power etc. at the time of dispatch is
________.

Local purchasing
True/False
Correct Answer True
Your Answer True
Page 17
Select The Blank
Question ________store stocks material hypothecated with banks & to
stock excisable goods.
Your Answer Inward
True/False
Question Turnover discount is usually related to the annual business and is
paid in the form of credit note at the end of the year.
Correct Answer True
Your Answer True
Select The Blank

Question ________ refers to the procurement of the requirements of all

Correct Answer Goods inward note , Receipt cum inspection advice ,
Material inward note
Your Answer Receipt cum inspection advice , Material inward note ,
Select The Blank


Question The registration of the firm may be cancelled and its name may be
removed from the list for following reasons :-
Correct Answer If the firm fails to execute contract satisfactorily. , If the
rules. , If the firm runs into loss for 2 consecutive years any time after the first
registration.
Your Answer If the firm is not declared insolvent , If the firm fails to execute
contract satisfactorily. , If the firm fails to furnish income tax clearance
certificate as required under the rules. , If the firm runs into loss for 2
consecutive years any time after the first registration.
Page 18
Select The Blank

Select The Blank


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.
Your Answer Bonus


Correct Answer Formulating & updating a system of stores and coding to
Your Answer Formulating & updating a system of stores and coding to
True/False
Question Training of vendors in JIT concepts brings an end to the
adversarial relationships.
Correct Answer True
Your Answer False

Page 19
Your Answer Unusual high demands , Delay in deliveries , Attitude of the
Match The Following

True/False
Question 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 True
Your Answer True

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

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

Correct Answer Quantity manufactured as per Work-Order & delivered to
stores in full

Page 20

Question Higher price is usually charged when the quantity required is
small. Bigger quantities on the other hand give the buyer a leverage to
negotiate for better price is :-
True/False
Correct Answer True
Your Answer True
Select The Blank

True/False
Question Ex-works means sale is made on rail/truck at the station of
dispatch.
Your Answer True
Select The Blank

Question Indian railways carry almost ________ goods & passenger
traffic.
Correct Answer 0.75
Your Answer 0.8


manufacture of furniture , Fruits in a canning industry
Page 21
Your Answer Cloth in the manufacture of garment , Wood in the
manufacture of furniture , Fruits in a canning industry , Coolants used in
machines
Select The Blank


True/False
price.
Your Answer False

Ordering cost
cost , Overhead


Your Answer Stores

Page 22

Question Which contract does not specify the quantity but the contractor is
bound to accept any order which may be placed on him during the contract
period?
True/False
Question Annual total cost remain constant though stock-turn over rate
changes.
Your Answer False
Select The Blank


Correct Answer True
Your Answer True
Select The Blank

Question Conformance to ________ is checked against
component drawings.

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 :-
True/False
Question Import substitution in reality should be looked upon as
"Import avoidance"
Correct Answer True
Page 23
Your Answer True
True/False
Your Answer True
Select The Blank

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

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.
Page 24
Your Answer False

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

Your Answer Written requisitions , Authorized requisitions , Name of
requisitor

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

Page 25
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 :-
Select The Blank

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

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

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

Correct Answer Physical storage of goods under custodianship in a
systematic manner
systematic manner
Page 26
True/False
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 :-
Match The Following


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

Page 27
True/False
Correct Answer True
Your Answer True
Select The Blank

operation.
Your Answer Layout



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
Correct Answer True
Your Answer False
Page 28

True/False
Question JIT purchasing is indirectly the activity of pushing
inventory on the suppliers.
Correct Answer True
Your Answer True

Correct Answer Buyer tempts to produce large quantity , Production is

Select The Blank

Question Originating department of daily material receipt report
is ________.
Select The Blank

Page 29

Match The Following

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

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


Question Heat is :-

Question A formal request to the purchase department, by the
indentor to procure the items mentioned therein and within the indicated time
schedule is :-
True/False
Question Coal and coke gas used for power generation and
process heating are direct materials.
Page 30
Your Answer True
Select The Blank

Question In a contract of sale by description the goods sold must
be of ________ quality.
True/False
Question Annual total cost remain constant though stock-turn
over rate changes.
Your Answer False

True/False
Correct Answer True
Your Answer True
Select The Blank

Question In traditional purchasing, quality is confirmed
________.
True/False
Question GRN is an important document between supplier, stores,
purchase, accounts depts.
Page 31
Correct Answer True
Your Answer True
Select The Blank

Question Conformance to ________ is checked against
component drawings.

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 :-
True/False
Question Import substitution in reality should be looked upon as
"Import avoidance"
Correct Answer True
Your Answer True
True/False
Your Answer True
Select The Blank

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

Correct Answer Examine the goods , Reject the goods delivered in wrong
Page 32
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

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

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

Your Answer Written requisitions , Authorized requisitions , Name of
requisitor

Page 33
Question The following are the actions would help to improve
effectiveness of materials planning :-
materials plan period
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 :-
Select The Blank

Question ________ department in almost all companies is the
biggest spending department and the custodian of company's purse.
Page 34
Select The Blank

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

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

Correct Answer Physical storage of goods under custodianship in a
systematic manner
systematic manner
True/False
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 :-
Match The Following


Page 35

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

True/False
Correct Answer True
Your Answer True
Select The Blank

operation.
Your Answer Layout

Page 36

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
Correct Answer True
Your Answer False

True/False
Question JIT purchasing is indirectly the activity of pushing
inventory on the suppliers.
Correct Answer True
Your Answer True

Correct Answer Buyer tempts to produce large quantity , Production is
Page 37

Select The Blank

Question Originating department of daily material receipt report
is ________.
Select The Blank


Match The Following

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

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

Page 38

Question Heat is :-

Question A formal request to the purchase department, by the
indentor to procure the items mentioned therein and within the indicated time
schedule is :-
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.
True/False
Question Annual total cost remain constant though stock-turn
over rate changes.
Your Answer False

Page 39
True/False
Correct Answer True
Your Answer True
Select The Blank

Question In traditional purchasing, quality is confirmed
________.
True/False
Question Bulky items impervious to weather is kept at very safe
place inside store.
Your Answer False
Select The Blank

Question Petroleum product imports are channealised
through________.

Question Procurement by more than one firm by pooling their
requirements is :-
Page 40

Question For the inspection of special Cutting tools which
department is responsible?
Correct Answer Planning department & inspection department
Match The Following

Replenishment method Right timeRight time

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

Question Import transactions are subject to following additional
laws compared to procurement from sources within the country as :-
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
Page 41
Your Answer True
True/False
Question Contract whose object is not lawful are not void.
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.
Your Answer False

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

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

Page 42
Question The buyers are asked to adopt the following method for
follow up :-
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 :-

Your Answer Discharge by performance , Discharge by Release ,
Select The Blank

Question ________ is followed in public sector organizations to
identify the lowest potential bidder.
True/False
Question The performance of an equipment can not be verified on
the spot if the equipment is not in operation.
Your Answer True
Match The Following

Page 43
Capital purchasing Plant and machineryPlant and machinery
True/False
Question Metals should be stored at least 15-20 cm above the
ground.
Correct Answer True
Your Answer True

Ordering cost
Your Answer Basic cost of materials , Ordering cost , Overhead
Select The Blank

True/False
Correct Answer True
Your Answer True

Question For large engineering firms main store could be sub
divided into :-
Page 44
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?
Select The Blank

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

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.

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

Page 45
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.
Select The Blank



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

Page 46
Question Internal factor influencing materials planning:-

Question The cost incurred in movement of materials from
suppliers works to buyer's works is
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 ________.
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 operation and maintenance of a manufacturing plant is
known as


Page 47

Question The main responsibility of inventory control division is
:-

Correct Answer Material need to be held under the control of the bank ,
explosive & inflammable items
Your Answer Material need to be held under the control of the bank ,
explosive & inflammable items
Select The Blank

Question ________ is a fundamental form of economical value.
Select The Blank

Question Discrepancies arising out of theft are tends to
________.

Page 48
dispatch is
True/False

purchasing
True/False
and is
Your Answer True
Select The Blank
Your Answer False
Material
inward note
spots
Select The Blank

to may be
Page no 1 of 19
the
Match The Following
Select The Blank

Discharge by
Discharge by
to items in full

adversarial small.
Your Answer False
better price is :-
Page no 2 of 19
True/False Ordering
Correct Answer True
True/False
Your Answer True
Your Answer 0.8
period?
Your Answer False
Select The Blank

is :-
price.
Page no 3 of 19
Your Answer Cost
True/False
Your Answer True

goods/services. ,
Select The Blank
buyer

True/False
called as



Correct Answer True
Page no 4 of 19
visualize
price is
True/False
up to safety
Your Answer True
Select The Blank


True/False
Correct Answer True
cost of an item
True/False
Your Answer False
Multiple Choice Multiple Answer IS 1644 Personal hazard, fire safety of buildings Personal hazard, fire
visualize
Page no 5 of 19
sizes to be made.
Pre

wing
Select The Blank
Match The Following
Select The Blank
the supplier

Your Answer Bogies
True/False


work , By
Change

decide first the
Page no 6 of 19
function
True/False
to
dispatch is
True/False

purchasing
True/False
and is
Your Answer True
Select The Blank
Your Answer False
Material
inward note
spots
Page no 7 of 19
relationships.
may be
the
Match The Following
Select The Blank

Discharge by
Discharge by
to items in full
Page no 8 of 19
True/False Ordering
Correct Answer True
True/False
Your Answer True
Your Answer 0.8
period?
Your Answer False
Select The Blank
is :-
component drawings.
published
Page no 9 of 19
Your Answer False
but do not
purchase-orders
True/False orders
"Import
requisitor
True/False
effectiveness

________.
lead time


True/False
Correct Answer True
Correct Answer True
Your Answer True
Page no 10 of 19
Select The Blank

outgoing
Select The Blank
materials,

Select The Blank

Correct Answer True
Select The Blank
Your Answer Layout
systematic manner
True/False

deliveries
quantity
Page no 11 of 19
sizes to be made.
Correct Answer True


Your Answer True



indentor to
is :-
buyer
process heating
is
Select The Blank
________ quality.
Page no 12 of 19
over rate
True/False


wrong
the item.
wrong quantity

________.
the

accounts depts.
procedures and

True/False

orders
True/False
Correct Answer True
Page no 13 of 19
requisitor
Select The Blank

systematic manner
factors affect
manner
Correct Answer True
widen
Your Answer False



through :-
Select The Blank

outgoing
Select The Blank
materials,

Page no 14 of 19
the suppliers.
Correct Answer True
Your Answer True
Your Answer Layout
cost is less

buyer
quantity
Select The Blank
deliveries is


Select The Blank
of


Page no 15 of 19
the item.

Select The Blank
________.

True/False
is :-
through________.
process heating

is :-
be of

responsible?
over rate

Your Answer False
True/False
supplier of
Page no 16 of 19
frequent
laws
policy act
:-
True/False
Correct Answer True
Correct Answer True
Your Answer True
True/False
Discharge by


on the spot

Page no 17 of 19
commercial terms

True/False
Your Answer True
major
changes occur.
the
Correct Answer True
movement,
item store
part
material
store
True/False
Your Answer True
engineering stage?
Select The Blank
Page no 18 of 19
organization.
Select The Blank
manufactured
plant


inflammable items
True/False
Correct Answer True
Your Answer True
Select The Blank
Your Answer Fixed

Page no 19 of 19

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

Select The Blank

Your Answer Cost
Select The Blank



Question The main responsibility of inventory control division is :-
Select The Blank

Question In order to make purchasing effective and to resolve the allied problems, there is ________
under the directorate.
True/False
3rd Sem Operations – Material Management 1

Correct Answer True
Your Answer False

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
True/False
Question Consignor & Consignee's name is must for every transport mode.
Correct Answer True
Your Answer True

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

True/False
Correct Answer True
Your Answer True

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
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
Select The Blank

Question Function which do not contribute to functional value is called as ________.
Select The Blank

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

Question Conformance to ________ is decided on the basis of tests and trial runs.

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

Question A higher price is usually demanded for the critical items since buyers have lesser options
available compared to other items where many alternative sources are available is :-

Question Good buyer -seller relations provide a good ground for negotiation while strained relations
make the supplier quote higher is :-


True/False
Your Answer False

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 make optimum utilization of available resources , To provide the enterprise a
competitive edge.
True/False
Question Lead time information is required for determination of safety stock.
Your Answer True
Select The Blank

Your Answer Layout

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

Correct Answer Annual inventory carrying cost , Annual procurement cost
Your Answer Annual inventory carrying cost , Annual procurement cost , Basic cost of an item
Match The Following

IS 1644 Personal hazard, fire safety of Personal hazard, fire safety of

buildings buildings

Correct Answer Locating supplier , Image building , Pre delivery follow up and shortage chasing
Your Answer Locating supplier , Maintaining records of shortages , Pre delivery follow up and shortage
chasing
Select The Blank


Select The Blank

Match The Following


True/False
Question Issue of stock is the process of reacting by stores management.
Correct Answer True
Your Answer True

Correct Answer By selectively delegating the powers , By developing local vendor
Your Answer By selectively delegating the powers , By better paper-work , By controlling wastage
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 True

Your Answer Auction , Disposal at normal price , Disposal at profitable price

Question The four main wings of DGS & D includes the following :-
Correct Answer The supplies wing , The inspection wing , The disposal wing
Your Answer The supplies wing , The inspection wing , The control wing
Select The Blank

Question Documents used in receiving materials are of ________
Select The Blank

Question The buyer, while using ________ tactic, may present the supplier with a budgeted price for the
product which is much lower than the supplier's quoted price.

Your Answer Bogies


Question A contract is discharged if it is impossible to perform under following causes :-
Correct Answer Death of promisee in a contract , Change in legislation , Change in circumstances under which
the contract was entered into.
Your Answer Death of promisee in a contract , Change in legislation , Change in circumstances under which
the contract was entered into.

True/False
Question Maintenance and repair costs in used equipments are relatively higher.
Correct Answer True
Your Answer True
True/False
Question GRN is an important document between supplier, stores, purchase, accounts depts.
Correct Answer True
Your Answer True
nd
2 Copy

True/False
Correct Answer True
Your Answer False
Correct Answer Items which have steady and regular consumption , Basic materials such as coal, steel,
coke etc. , Seasonal items
Your Answer Perishable items , Items which have steady and regular consumption , Basic materials

Question Additional concession given by the seller in non fixed price items are industry wise fixed and
hence the seller is not in a position to give any concession is called as :-

Correct Answer Proprietor , Partner of firm , Person duly authorized by board of directors of company
Your Answer Proprietor , Partner of firm , Person permitted by custom office , Person duly authorized by
True/False
Question Small parcels, Samples, gifts which are received from other countries provisions of import
policy & customs not applied on them.
Your Answer False
Match The Following

Select The Blank

Question A combination of fixed price with a clause to increase price to compensate the supplier for
justified cost increases on account of changes in price of raw material, Government. levies, power etc. at
the time of dispatch is ________.

Your Answer Blanket orders , Green purchasing , System contracting , Local purchasing
True/False
Correct Answer True
Your Answer True
Select The Blank

Question ________store stocks material hypothecated with banks & to stock excisable goods.

Your Answer Inward
True/False
Question Turnover discount is usually related to the annual business and is paid in the form of credit
note at the end of the year.
Correct Answer True
Your Answer True
Select The Blank

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

Correct Answer Goods inward note , Receipt cum inspection advice , Material inward note
Your Answer Receipt cum inspection advice , Material inward note , Discrepancy note. , Goods inward
note
Select The Blank


Question The registration of the firm may be cancelled and its name may be removed from the list for
following reasons :-
Correct Answer If the firm fails to execute contract satisfactorily. , If the firm fails to furnish income tax
clearance certificate as required under the rules. , If the firm runs into loss for 2 consecutive years any
time after the first registration.
Your Answer If the firm is not declared insolvent , If the firm fails to execute contract satisfactorily. , If
the firm fails to furnish income tax clearance certificate as required under the rules. , If the firm runs into
Select The Blank

Select The Blank


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.
Your Answer Bonus



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.
True/False
Question Training of vendors in JIT concepts brings an end to the adversarial relationships.
Correct Answer True
Your Answer False

Your Answer Unusual high demands , Delay in deliveries , Attitude of the staff , Machine break-down
Match The Following

True/False
Question 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 True
Your Answer True

Question The sub system of numerical system involves following : -

Correct Answer Discharge by performance , Discharge by Release , Discharge by novation
Your Answer Discharge by performance , Discha rge by Release , Discharge by Disability , Discharge by
novation

Correct Answer Quantity manufactured as per Work -Order & delivered to stores in full


Question Higher price is usually charged when the quantity required is small. Bigger quantities on the
other hand give the buyer a leverage to negotiate for better price is :-
True/False
Correct Answer True
Your Answer True
Select The Blank

True/False
Your Answer True
Select The Blank

Correct Answer 0.75
Your Answer 0.8


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 , Coolants used in machines
Select The Blank


True/False
Your Answer False

Your Answer Basic cost of materials , Government tax and levies , Ordering cost , Overhead

Your Answer Exposure to light , Moisture , Use of excess chemicals while manufacturing , Keeping in
cold

Your Answer Stores


Question Which contract does not specify the quantity but the contractor is bound to accept any order
which may be placed on him during the contract period?
True/False
Your Answer False
Select The Blank

rd
3 Copy

Select The Blank

Question Application of computers in materials mgt. is classified in to
________.
Correct Answer 3 groups
Your Answer 2 groups

Question EOQ changes :-
Correct Answer When prices are different , When inventory carrying cost is
different
Your Answer When inventory carrying cost is different , When set-up cost is
changed , When manpower cost is changed
True/False
Question An item with usage value can have neither exchange value nor
esteem value.
Your Answer True
True/False
Question Purchase cost is the price paid the supplier
Correct Answer True
Your Answer True

Question Make-or-buy decision is influences the :-
Correct Answer Quality requirement of product
Your Answer Number of employees

Question What information is included in identification of material?
Correct Answer Part description , Source of supply , Customer to which it is sold
Your Answer Part number of item , Part description , Source of supply

Question Vendor rating provides the basis for :-
Correct Answer Eliminating vendors who repeatedly fail to meet the required
standards , Comparing one vendor against the other and thereby
decide the share of business for each vendor. , Holding
discussions with the representative of the supplier and
identifying the areas where buyer wants supplier to improve.
Your Answer Eliminating vendors who repeatedly fail to meet the required
standards , Holding discussions with the representative of the
supplier and identifying the areas where buyer wants supplier to
improve.
Select The Blank

Question Customs duty is paid through ________.
Correct Answer Bill of entry
Your Answer Bill of entry

Question For longer distance ( more than 500 Kms )
Correct Answer Rail transport is desirable
Your Answer Speed cargo is desirable

Question Following are distinguishing features of Air consignment :-
Correct Answer No system of prior entry , 3 free days are allowed from flight date
Your Answer No system of prior entry , 3 free days are allowed from flight date

Your Answer High value items
Select The Blank

Question Finished parts are called as ________.
Correct Answer Bought-out parts
Your Answer Bought-out parts
Select The Blank

Question Malpractices are ________.
Correct Answer Manipulations by stores staff
Your Answer Manipulations by stores staff
Select The Blank

Question ________ is an addition of unnecessary cost to product
Correct Answer Poor design
Your Answer Poor design

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

Question Quantity discounts reduces :-
Correct Answer Procurement cost
Your Answer Stock outs
True/False
Question Reorder qty. in reorder level system equal "max. level less sum
of stock on hand & stock on order.
Your Answer True
Multiple Choice Single Answ er

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

Correct Answer Basic cost of materials , Government tax and levies , Ordering
cost
cost
True/False
Question Manual inspection is economical when volume of output is small.
Correct Answer True
Your Answer True

Correct Answer Quantity manufactured as per Work-Order & delivered to stores

in full
Your Answer Quantity manufactured as per Work-Order & delivered to stores
in full
Select The Blank

Question Tendering in the absence of negotiations is also called
________.
Correct Answer Firm bidding
Your Answer Firm bidding

Question Code should be symmetrical :-
Correct Answer Layout of codes
Your Answer Self decoding
Match The Following

Labour management Investigating into suppliers Investigating into suppliers

relations capabilities capabilities
Technical discussions Techno commercial Techno commercial
between the discussion and trial order discussion and trial order
representatives of a buyer
and supplier
Follow up with the supplier Sample validation Sample validation
until sample submission
Type of supplier Preliminary selection of Need for source selection
the suppliers and source development
True/False
Question The doctrine states that it is seller's duty to point out the defects
in his own goods
Your Answer True

Question What are the areas of control to improve profit
Correct Answer Increase units sold , Increase production , Reducing capital
Your Answer Increase units sold , Increase production , Decrease unit price
True/False
Question Stores is the "Safe Custody" for keeping materials
Correct Answer True
Your Answer True

Question MRP-1 concept based on :-
Correct Answer Independent demand , Dependent demand
Your Answer Independent demand , Uniform demand , Seasonal demand
True/False
Question Periodic review of stock detect obsolete & non-moving items.
Correct Answer True
Your Answer True
True/False
Question A buyer has a little or no control over the lead time.
Your Answer True

Question Material requisition means :-
Correct Answer Material request note signed by authorized person
Your Answer Request for material as required
True/False
Question Malpractices are the manipulations by stores personnel with
active help of outsiders.
Correct Answer True
Your Answer False

Question Set-up time can be reduced by :-
Correct Answer SMED technique
Your Answer SMED technique


Your Answer Proprietor , Person permitted by custom office , Person duly
authorized by board of directors of company

Question A contract for the supply of a specified quantity of stores by the
contractor, at a price and within delivery period covered by the
contract is :-
Correct Answer Fixed quantity contracts
Your Answer Fixed quantity contracts

Question For large engineering firms main store could be sub divided
into :-
Correct Answer Raw material store , Semi finished item store , Finished part
store
Your Answer Raw material store , Semi finished item store , Finished part
store
Select The Blank

Question When the costs are balanced, total cost is ________.
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 operation and maintenance of a manufacturing plant is
known as
Match The Following

Store-sales Provide up-to-date Provide up-to-date

information of finished information of finished
good stock good stock
Store-purchase Information @surplus Ensure spare stock for non
obsolete, slow moving stoppage of production
items
Store-production Issue right material at time Issue right material at time
at right place at right place
Store -quality Inform for checking as Inform for checking as
material is in warded material is in warded

Question The registration of the firm may be cancelled and its name may
be removed from the list for following reasons :-
Correct Answer If the firm fails to execute contract satisfactorily. , If the firm fails
to furnish income tax clearance certificate as required under the
rules. , If the firm runs into loss for 2 consecutive years any time
after the first registration.
Your Answer If the firm fails to execute contract satisfactorily. , If the firm fails
to furnish income tax clearance certificate as required under the
rules.
True/False
Question The pilot lot is checked and tested as per detailed testing and
inspection criteria.
Correct Answer True
Your Answer True

Question The need to re-classify and shuffle the categories should be kept
at zero is :-
Correct Answer Consistency
Your Answer Layout of codes

Question Supplier selection for importing goods can be done by :-
Correct Answer Agent of present foreign company working within country ,

Global tenders are floated for costly equipment , For scarce
items, buyer may request the trade commissioner abrade to help
for supplier location
Your Answer Agent of present foreign company working within country ,
Global tenders are floated for costly equipment , Supplier can be
searched by import clearing Agencies
True/False
Question A firm engaged in custom-built-product, is usually plagued with
obsolete material.
Correct Answer True
Your Answer False
Select The Blank

compensate the supplier for justified cost increases on account
of changes in price of raw material, Government. levies, power
etc. at the time of dispatch is ________.
Your Answer Fixed price with predetermination
Select The Blank

Question ________Licence to permit import of capital goods.
Correct Answer EPCG licence
Your Answer None of the above
Select The Blank

Your Answer Nil stock

Select The Blank

product is :-
True/False
Correct Answer True
Your Answer True
True/False
Your Answer True
Select The Blank


conforming goods
of buyer
Select The Blank

True/False
Correct Answer True
Your Answer True
True/False
Your Answer False



planning :-
Select The Blank

True/False
Correct Answer True
Your Answer False


Select The Blank

Select The Blank

Select The Blank


True/False
Correct Answer True
Your Answer True

Match The Following



True/False
Correct Answer True
Your An swer True
Select The Blank

Your Answer Layout



by the buyer.
purchase order.
True/False
Correct Answer True
Your Answer False

True/False
Correct Answer True
Your Answer True


Select The Blank

Select The Blank

pattern.

Match The Following




Question Heat is :-

True/False
materials.
Your Answer True
Select The Blank

True/False
Your Answer False

True/False
Correct Answer True
Your Answer True
Select The Blank


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Small size valuables Post-parcel Post-parcel

Bulky goods in large qty. Rail transport Rail transport

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Vendor rating Right source Right source

Replenishment method Right time Right time

Competitive bidding Right price Right price

EOQ Right quantity Right quantity

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