UnitName          ChapterName SectionName  Questions                                                              A
               Material Cost     Material Cost     Material Cost    The most important element of cost is _____.          Material
                                                                    Request to the supplier to supply material is an 
               Material Cost     Material Cost     Material Cost    _____.                                                re-order
                                                                    _____ _____ are fixed to control inventory.           Maximum 
               Material Cost     Material Cost     Material Cost                                                          Level
                                                                      _____ _____ indicates maximum stock to be Maximum 
               Material Cost     Material Cost     Material Cost    maintained.                                           Level
               Material Cost     Material Cost     Material Cost    Economical size of order is called as _____.          Production
                                                                    _____ _____ _____ shows minimum stock to Minimim 
               Material Cost     Material Cost     Material Cost    be maintained.                                        Stock Level
               Material Cost     Material Cost     Material Cost    Scientific purchasing begins with _____.              Indenting
                                                                    Goods  received  note  is  prepared  by  _____ 
               Material Cost     Material Cost     Material Cost    _____.                                                Purchase
               Material Cost     Material Cost     Material Cost    _____ _____ shows stock position at the bin.          EOQ
                                                                    _____ _____ _____ is decided on the basis of 
               Material Cost     Material Cost     Material Cost    ordering cost and carrying cost.                      EOQ
                                                                    _____ _____ _____ locks of maximum working 
                                                                                                                          Average Stock 
               Material Cost     Material Cost     Material Cost    capital.                                              Level
                                                                    _____      analysis    shows     classification    of 
               Material Cost     Material Cost     Material Cost    inventory into three categories.                      EOQ
               Material Cost     Material Cost     Material Cost    _____ class items requires loose control.             C
               Material Cost     Material Cost     Material Cost    _____ class items are costliest.                      A
               Material Cost     Material Cost     Material Cost    _____ class items requires more attention.            B
               Material Cost     Material Cost     Material Cost    _____ class items require moderate control.           C
                                                                    Purchase order is an order to Stores Department 
               Material Cost     Material Cost     Material Cost    to issue materials.                                   True 
                                                                    EOQ is that quantity which is most economical 
               Material Cost     Material Cost     Material Cost    to order.                                             True 
               Material Cost     Material Cost     Material Cost    EOQ is also called as re-order quantity.              True 
                                                                    Investment in inventory should be optimised by 
               Material Cost     Material Cost     Material Cost    maintaining low stock levels.                         True 
                                                                    Direct materials is the materials which can be 
               Material Cost     Material Cost     Material Cost    directly related to the cost centre.                  True 
                                                                    The stock  in  hand  may  exceed  the  maximum 
               Material Cost     Material Cost     Material Cost    stock level.                                          True 
               Material Cost     Material Cost     Material Cost    Stock levels are fixed up for inventory control.      True 
                                                                    In no case, material should go below minimum 
               Material Cost     Material Cost     Material Cost    level.                                                True 
                                                                    The  objective  of  scientific  purchasing  is  to 
               Material Cost     Material Cost     Material Cost    procure materials of good quality.                    True 
                                                                    Purchase  requisition  requests  the  supplier  to 
               Material Cost     Material Cost     Material Cost    supply materials.                                     True 
                                                                    Invitation  to  tender  is  signed  by  the  Purchase 
               Material Cost     Material Cost     Material Cost    Officer.                                              True 
                                                            Purchase Order is a request to the supplier to 
              Material Cost  Material Cost   Material Cost  send information about materials.              True 
                                                            Delivery challan is an evidence of delivery of 
              Material Cost  Material Cost   Material Cost  materials.                                     True 
                                                            Material  Inspection  Note  is  forwarded  to  the 
              Material Cost  Material Cost   Material Cost  Stores Department.                             True 
                                                            Bin  Card  gives  information  about  position  of 
              Material Cost  Material Cost   Material Cost  each item.                                     True 
                                                            Stores  Ledger  shows  movement  of  materials 
              Material Cost  Material Cost   Material Cost  showing quantity and value.                    True 
                                                            Material  Abstract  is  the  analysis  of  material 
              Material Cost  Material Cost   Material Cost  issued against the material requisitons.       True 
                                                            Under  Perpetual  Inventory  System,  store 
                                                            balance  is  ascertained  after  every  receipt  and 
              Material Cost  Material Cost   Material Cost  issue of material.                             True 
              Material Cost  Material Cost   Material Cost  The most important element of cost is          material
                                                                                                           Purchase of 
              Material Cost  Material Cost   Material Cost  The function of Purchase Department is         materials
                                                                                                           Request to the 
                                                                                                           supplier to 
                                                                                                           supply 
              Material Cost  Material Cost   Material Cost  Purchase order is a                            materials
              Material Cost  Material Cost   Material Cost  Goods received note is normally prepared in    six copies
                                                                                                           control 
              Material Cost  Material Cost   Material Cost  Stock levels are fixed to                      inventory
                                                                                                           maximum 
                                                            Maximum level indicates                        inventory to be 
              Material Cost  Material Cost   Material Cost                                                 kept
                                                            EOQ is                                         economical 
              Material Cost  Material Cost   Material Cost                                                 size of order
                                                                                                           economic size 
              Material Cost  Material Cost   Material Cost  EOQ is also known as                           of order
                                                                                                           minimum stock 
                                                            Minimum inventory level is                     to be 
              Material Cost  Material Cost   Material Cost                                                 maintained
              Material Cost  Material Cost   Material Cost  Material control encompasses :                 Purchasing
                                                            The essentials of sound material control 
              Material Cost  Material Cost   Material Cost  procedure include :                            Coordination
                                                            The objective of material control is :         Adequacy of 
              Material Cost  Material Cost   Material Cost                                                 inventory
                                                            Scientific purchasing begins with :            Indenting for 
              Material Cost  Material Cost   Material Cost                                                 materials
              Material Cost  Material Cost   Material Cost  Purchase order is prepared generally in :      4 copies
                                                            The function of Receiving Department is to :   Open the 
              Material Cost  Material Cost   Material Cost                                                 packages
                                                            Material requisition is signed :               production 
              Material Cost  Material Cost   Material Cost                                                 department
                                                                                                           Production 
                                                            Bill of material is signed by :                planning 
              Material Cost  Material Cost   Material Cost                                                 department
              Material Cost   Material Cost   Material Cost   Material inspection note is signed by the :     Inspector
                                                              Goods received note is prepared by :            purchase 
              Material Cost   Material Cost   Material Cost                                                   department
                                                                                                              Material is 
                                                                                                              transferred 
                                                                                                              from one 
                                                                                                              department to 
                                                                                                              another 
              Material Cost   Material Cost   Material Cost   Material transfer note is prepared when :       department
                                                              Bin card shows :                                Receipt of 
              Material Cost   Material Cost   Material Cost                                                   stores
                                                                                                              Most 
                                                              EOQ is :                                        economical 
              Material Cost   Material Cost   Material Cost                                                   size of order
                                                              EOQ is decided on the basis of :                Carrying cost 
              Material Cost   Material Cost   Material Cost                                                   of inventory
                                                              Order should be placed with the supplier when 
              Material Cost   Material Cost   Material Cost   the inventory touches :                         maximum level
                                                              Minimum Inventory level shows :                 Maximum 
              Material Cost   Material Cost   Material Cost                                                   inventory
                                                                                                              More working 
              Material Cost   Material Cost   Material Cost   Maximum inventory locks up :                    capital
                                                                                                              Opening 
              Material Cost   Material Cost   Material Cost   Average inventory is :                          inventory
                                                              Minimum inventory is to ensure :                minimum 
              Material Cost   Material Cost   Material Cost                                                   working capital
                                                                                                              Inventory 
              Material Cost   Material Cost   Material Cost   ABC analysis is a technique developed for :     management
                                                              EOQ is the _____ size of the order at that point 
              Material Cost   Material Cost   Material Cost   ordering and carrying costs are minimised.      Optimum
              Material Cost   Material Cost   Material Cost    In ABC analysis ‘C’ class items require :      Loose control
              Material Cost   Material Cost   Material Cost    In ABC analysis ‘A’ class items require :      Loose control
                                                                                                              Optimise 
                                                                                                              investment in 
              Material Cost   Material Cost   Material Cost    The objective of inventory management is to :  current assets
                                                               Average annual consumption of material is 
                                                              20,000 kgs at a price of ` 2 per kg. The holding 
                                                              cost is 16% and ordering cost is ` 50. How 
              Material Cost   Material Cost   Material Cost   much should be EOQ?                             2500 kgs
                                                               A factory required 1,000 units per year. The 
                                                              cost of placing an order is ` 60 and carrying 
              Material Cost   Material Cost   Material Cost   cost is ` 3 p.a. The EOQ is                     200
                                                             A firm requires 16,000 units per year. It 
                                                            purchases at ` 60 each. The cost of placing an 
                                                            order is ` 120 and annual carrying cost is 10% 
                                                            of the cost. To get maximum benefits, the firm 
              Material Cost  Material Cost   Material Cost  should place an order for _____ at a time.     800 units
                                                            The annual usage of the particular material is 
                                                            2,00,000 units. The EOQ is 20,000 units. Cost 
                                                            of placing an order is ` 80. Invoice cost is ` 500 
              Material Cost  Material Cost   Material Cost  per unitt. The average inventory is            10,000 units
                                                            Refer the above question the estimated annual 
              Material Cost  Material Cost   Material Cost  ordering cost is                               ` 800