Quiznetik

Cost and Works Accounting 1 | Set 2

1. ………………………..is an element of material control

Correct : A. Purchase Control

2. Purchase of material a substantial of the company’s finance is committed which affects ………position of the company.

Correct : A. Cash flow

3. Purchase of right quantity of material avoids locking up of …………….

Correct : A. Working Capital

4. Effective purchase control prevents wastage and losses of material right from the purchase from their ……………….

Correct : A. Consumption

5. Purchase Control enables the management to reduce………..

Correct : A. cost of production

6. effective purchase control fixes the responsibilities of……………….

Correct : A. Operating Units

7. Basic objective of the effective …………………..is to ensure continuity of supply of requisite quality of material.

Correct : A. Purchase Control

8. ……………….is specialized activity frequently carried on by a separate department under the control of buyer or purchasing officer.

Correct : A. Purchasing

9. The …………………………will in all his activities carry out the policy of his organization with regard o buying

Correct : A. Purchasing Officer

10. ………………………….is of extreme importance particularly to a manufacturing concern.

Correct : A. Purchasing

11. Purchase manager must know the exact …………………….of materials which are used in the production.

Correct : A. Specification

12. Purchasing department should purchase the material strictly as per ……………………….of the various department.

Correct : A. requisition

13. ………………..is an important element in purchase procedure.

Correct : A. Time

14. Preparation of…………………..is one of most important function of purchase Department.

Correct : A. Purchase Budget

15. For prompt and correct payment of purchase bills there should be close liaison with the …………..and ……..department.

Correct : A. account and store

16. ……………………….guides to the purchase manager in knowing what he has to buy.

Correct : A. Purchase budget

17. After receiving the ……………………..the Purchase department starts exploring the source of materials and suppliers.

Correct : A. Purchase Requisition

18. An account payable is posted to accounting upon creation of the following document

Correct : D. All of the above

19. In which stage of the negotiation meeting are points of concession identified?

Correct : D. scratch bargaining

20. Which type of warranty is enacted if a service or product does not meet the level of quality specified in the contract?

Correct : C. Express warranty

21. Which is not an element of procurement management?

Correct : D. B and C

22. The purchasing cycle consists of all the following elements except?

Correct : C. Inspection

23. The cost of corrective action taken by the purchaser and chargeable to the supplier under the terms of the contract is:

Correct : D. Back charge

24. _________ is a narrative description of the work to be accomplished or resource to be supplied.

Correct : C. Scope of work

25. By which means is a contractor able to control costs overruns due to changing requirements?

Correct : C. Change control

26. __________ is a written order directing the contractor to make changes according to the provisions of the contract documents.

Correct : A. Change order / purchase order amendment

27. __________ defines when the work is ready for or is being used for the purpose intended and is so certified.

Correct : B. Substantial completion

28. __________ is a request for interim stoppage of work due to non conformance, funding or technical considerations.

Correct : B. Stop work order

29. The process that may be used by an unsuccessful supplier to seek remedy for a non award of work is:

Correct : A. Bid protest

30. The __________ specification describes, defines or specifies the goods / services to be supplied. Performance

Correct : C. Bid

31. The Bid Evaluation process is characterized by all of the following activities except?

Correct : D. Competitors method of sourcing

32. Which is not a consideration in a make or buy decision?

Correct : B. Sales volume

33. There are four methods of government procurement. Which is not one of these methods?

Correct : D. Acquisition

34. A purchasing operation does not contain this classification of work?

Correct : D. Marketing

35. __________ is a register of suppliers invited to submit bids for goods / services as specified.

Correct : B. Bid list

36. __________ is a formal invitation to submit a price for goods and / or services as specified.

Correct : D. Request for proposal

37. Which contract type should be used by the owner on a high risk project?

Correct : C. Lump sum

38. Cost reimbursable contracts are equivalent to:

Correct : C. Cost plus contracts

39. Fixed price and incentive type contracts place responsibility for performance and financial risks associated with delay or non-performance on the:

Correct : A. Contractor

40. __________ is based on information gathered and analyzed about demand and supply. this forecast provides a prediction of short and long term prices and the underlying reasons for those trends.

Correct : A. Sales forecast

41. The contract is signed at the end of the:

Correct : D. Award cycle

42. Definitive contract terms are spelled out in the:

Correct : C. Post-award phase

43. A bilateral RFP is preferred to an invitation to bid when:

Correct : C. The product or service has high value and is unique

44. Which one of the following is not included in the 5 R in purchasing?

Correct : D. None of these

45. Which of the following is not a function of purchasing management?

Correct : D. None of these

46. The purchase order form is designed by

Correct : B. Purchase Manager

47. The objective(s) of forward purchasing is / are

Correct : A. To guard against interruption in supply

48. JIT contributed to the

Correct : A. Reduced inventories and WIP

49. “Hedging” technique is used

Correct : C. Both (a) and (b)

50. Purchase Budget has an impact on

Correct : D. All of these

51. Right quality means

Correct : D. Buying quality which suits the needs without incurring extra cost to the company

52. Purchase order is a legal binding contract only if it is

Correct : A. accepted by the supplier

53. The document prepared on receipt of materials in store is known as

Correct : B. GRN

54. The system of purchasing from one’s customer preferred to others is known as

Correct : C. Reciprocal Buying

55. The purchasing view of the material master is relevant at what organizational level?

Correct : D. Plant

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

Correct : C. Purchase requisition

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

Correct : C. Order

58. ……………….formsthe basis of entries to the stores ledger.

Correct : B. Goods Received Note

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

Correct : A. Re-order level

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

Correct : C. Minimum stock level

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

Correct : B. 1665

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

Correct : C. Economic Order Quantity

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

Correct : B. Ordering Cost

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

Correct : A. Inventory

65. Which of the following is not an inventory?

Correct : A. Machines

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

Correct : D. Machining cost

67. The cost of insurance and taxes are included in

Correct : C. Inventory carrying cost

68. ‘Buffer stock’ is the level of stock

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

69. The minimum stock level is calculated as

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

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

Correct : D. All of the above

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

Correct : A. Lead time

72. Re-ordering level is calculated as

Correct : A. Maximum consumption rate x Maximum re-order period

73. Average stock level can be calculated as

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

74. The Economic Order Quantity (EOQ) is calculated as

Correct : B. Root of 2AO / C

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

Correct : A. 400

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

Correct : B. Storage

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

Correct : A. Classification

78. ………………..is the procedure for assigning symbols to the material.

Correct : B. Codification

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

Correct : C. Alpha-Numerical

80. …………………..is the organisational head of the stores department.

Correct : A. Storekeeper

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

Correct : C. Storekeeper

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

Correct : A. Bin Card

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

Correct : B. Cost

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

Correct : B. Stores Ledger

85. …………………… method of pricing issues follows the principle that material received first are issued first.

Correct : C. FIFO

86. Under the…………. method of pricing issues, stock is valued at historical price.

Correct : B. LIFO

87. Simple average method is based on the principle that materials issues should be valued at ………… average price.

Correct : B. Simple

88. Under……………… method of pricing issues, issues are valued at a price calculated by dividing the total cost of material in the stock by the total quantity of material in stock.

Correct : B. Weighted average

89. …………………stores organization is adopted to store all the goods at centrally located at on place.

Correct : A. Centralized

90. Under…………… method of pricing material issue the value of closing stock represents the current market price.

Correct : C. FIFO

91. The unused materials are returned to stores with a material …………..note.

Correct : C. Return

92. ……………………method of pricing material issues provides a better matching of current costs with current revenues.

Correct : B. LIFO

93. ……………….is a master requisition which lists all the materials required for the completion of a job.

Correct : A. Bill of Material

94. Advantage of both centralized buying and storage of having stock conveniently available at several issuing points are possible in……………. system of stores organization.

Correct : B. Central stores with Sub-stores

95. Bin Card is also known as…………….

Correct : A. Stock Card

96. The weighted average method divides the cost of goods available for sale by the number of units:

Correct : A. Available for sale

97. Cost of goods available for sale can be calculated by:

Correct : A. Opening stock + purchases

98. Weighted average cost method produces different allocation of inventory costs in periodic and perpetual inventory system?

Correct : A. Yes

99. In a perpetual inventory system, the weighted average cost method is called:

Correct : A. Moving average cost method

100. The weighted average method is most commonly employed when inventory items are:

Correct : B. Connected closely with each other