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MCQs

Total Questions : 163 | Page 5 of 17 pages
Question 41. The activities related to coordinating, controlling and planning flow of inventory are classified as
  1.    decisional management
  2.    throughput management
  3.    inventory management
  4.    manufacturing management
 Discuss Question
Answer: Option C. -> inventory management
Answer: (c).inventory management
Question 42. Which of the following is an example of purchasing costs?
  1.    incoming freight
  2.    storage costs
  3.    insurance
  4.    spoilage
 Discuss Question
Answer: Option C. -> insurance
Answer: (c).insurance
Question 43. If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then the annual relevant carrying cost will be
  1.    $5,000
  2.    $4,500
  3.    $5,500
  4.    $6,000
 Discuss Question
Answer: Option A. -> $5,000
Answer: (a).$5,000
Question 44. If the demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then the economic order quantity will be
  1.    678 packages
  2.    648 packages
  3.    658 packages
  4.    668 packages
 Discuss Question
Answer: Option B. -> 648 packages
Answer: (b).648 packages
Question 45. The cost of product failure, error prevention and appraisals can be classified under
  1.    stocking costs
  2.    stock-out costs
  3.    costs of quality
  4.    shrinkage costs
 Discuss Question
Answer: Option C. -> costs of quality
Answer: (c).costs of quality
Question 46. The required rate of return, is multiplied per unit cost of purchased units to calculate
  1.    irrelevant inventory carrying costs
  2.    relevant opportunity cost of capital
  3.    relevant purchase order costs
  4.    relevant inventory carrying costs
 Discuss Question
Answer: Option B. -> relevant opportunity cost of capital
Answer: (b).relevant opportunity cost of capital
Question 47. The costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as
  1.    carrying costs
  2.    purchasing costs
  3.    stock-out costs
  4.    ordering costs
 Discuss Question
Answer: Option A. -> carrying costs
Answer: (a).carrying costs
Question 48. The costs of goods acquired from suppliers are classified as
  1.    stock-out costs
  2.    ordering costs
  3.    carrying costs
  4.    purchasing costs
 Discuss Question
Answer: Option D. -> purchasing costs
Answer: (d).purchasing costs
Question 49. The systematic flow of services, goods or information from the buying material for product delivery to the customers is known as
  1.    supply chain
  2.    value chain
  3.    material flow chain
  4.    manufacturing flow chain
 Discuss Question
Answer: Option A. -> supply chain
Answer: (a).supply chain
Question 50. An ability of an accounting system, to point out the use of resources in every step of production process is called
  1.    back-flush trails
  2.    audit trails
  3.    trigger trails
  4.    lead manufacturing trails
 Discuss Question
Answer: Option B. -> audit trails
Answer: (b).audit trails

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