This quiz works best with JavaScript enabled. Home > Accounting > Inventory Production > Inventory And Production Management > Inventory And Production Management – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inventory And Production Management Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the name of materials used in the production process that do not become part of the product? A) MRO items. B) Finished goods. C) Raw materials. D) Work-in-process. Show Answer Correct Answer: A) MRO items. 2. Inventory management helps businesses be successful ..... It requires the understanding of A) Inventory Levels. B) Inventory Value. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 3. What key aspect of inventory is focused on how much of each inventory item can be suitably housed and where to send it? A) Techniques. B) Analysis. C) Forecasting. D) Storage. Show Answer Correct Answer: D) Storage. 4. What key aspect of inventory is focused on how much stock is needed to satisfy demand over an upcoming time period? A) Forecasting. B) Analysis. C) Storage. D) Purchasing. Show Answer Correct Answer: A) Forecasting. 5. Those items on which all manufacturing operations, including final test, have been completed. A) Reorder Point. B) Physical Inventory. C) Finished goods. D) Safety Stock. Show Answer Correct Answer: C) Finished goods. 6. The amount ordered from time period to time period. A) Safety Stock. B) Inventory Order System. C) Inventory Management. D) Reorder Quantity. Show Answer Correct Answer: D) Reorder Quantity. 7. Managing purchases includes ..... A) Selecting the cheapest, lowest quality goods you can find. B) Selecting the appropriate quality goods that match your needs. C) Selecting the most expensive, highest quality goods. D) None of the above. Show Answer Correct Answer: B) Selecting the appropriate quality goods that match your needs. 8. Managing purchases may include ..... A) Timing your purchases so that your money/ resources are not tied up longer than they need to be. B) Taking advantages of economic conditions. C) Stocking up when necessary. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. Gives a mechanism for initiating and controlling the flow ofmaterials through a supply chain. A) Purchasing. B) Physical Distribution Management. C) Supply Chain. D) Procurement. Show Answer Correct Answer: A) Purchasing. 10. Which one is NOT part of inventory holding cost A) Ordering cost. B) Capital cost. C) Risk cost. D) Storage cost. Show Answer Correct Answer: A) Ordering cost. 11. Purchasing additional stock of products that sell more in certain seasons is: A) Reorder point. B) Stockout. C) Anticipation Stock. D) Buffer stock. Show Answer Correct Answer: C) Anticipation Stock. 12. Which of the following statements is not a common reason for holding inventory in organisations? A) To facilitate availability of a variety products for the customer. B) To avoid price increases. C) To ensure that demand is not met. D) To take advantage of ordering cycles. Show Answer Correct Answer: C) To ensure that demand is not met. 13. The risk of providing a lot of material is A) Requests from operations can be well supported. B) Encouraging operations to immediately pick up the ordered material. C) Reducing the guarantee of material availability. D) Large embedded costs. Show Answer Correct Answer: D) Large embedded costs. 14. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to shrinkage (leakage) and insurance A) Ordering cost. B) Carrying cost. C) Purchasing cost. D) Stockout cost. Show Answer Correct Answer: B) Carrying cost. 15. A company has 9, 000 units on hand and the annual usage is 48, 000 units. There are 240 working days in the year. What is the number of days supply? A) 40 days. B) 45 days. C) 25 days. D) 50 days. Show Answer Correct Answer: B) 45 days. 16. The form a buyer sends to a vendor to officially place an order is a(n): A) Purchase order. B) Bid. C) Invoice. D) Receiving record. Show Answer Correct Answer: A) Purchase order. 17. A type of fixed order quantity model that determines the amount of an item to be purchased or manufactured at one time. A) Mean Absolute Deviation. B) Safety Stock. C) Economic Order Quantity. D) Reorder Quantity. Show Answer Correct Answer: C) Economic Order Quantity. 18. Actual buying of Products A) Purchasing. B) Selling. C) Procurement. D) Buying. Show Answer Correct Answer: A) Purchasing. 19. Stands for FIRST In, Still Here A) HIFO. B) FIFO. C) FISH. D) LIFO. Show Answer Correct Answer: C) FISH. 20. ..... involves reviewing your sales objectives, then making purchasing decisions. A) Managing purchases. B) Planning purchases. C) Inventory management. D) Inventory control. Show Answer Correct Answer: B) Planning purchases. 21. Loss of inventory for any raeson including damage, theft, or expiration. A) Usage. B) Physical Inventory. C) Inventory Management. D) Inventory Shrinkage. Show Answer Correct Answer: D) Inventory Shrinkage. 22. Those stocks or items used to support production (raw materials and work-in-process items. A) Usage. B) Stock Keeping Unit. C) Finished Goods. D) Inventory. Show Answer Correct Answer: D) Inventory. 23. The act of holding and handling goods in a ware-house is ..... ? A) Lead time. B) Warehousing. C) Usage rate. D) Safety stock. Show Answer Correct Answer: B) Warehousing. 24. Lead time is determined by which one of the following: A) The time taken for the supplier to deliver. B) The buffer stock level required. C) The cost of holding stocks. D) The amount of storage space. Show Answer Correct Answer: A) The time taken for the supplier to deliver. 25. How often should a physical inventory be conducted? A) Once or twice a year. B) Twice a month. C) Once or twice a week. D) Every 5 years. Show Answer Correct Answer: A) Once or twice a year. 26. Among different types of costs associated with inventory, the costs of obtaining purchase approvals are ..... A) Holding costs. B) Ordering costs. C) Purchasing costs. D) Stockout costs. Show Answer Correct Answer: B) Ordering costs. 27. What are the typical measures of inventory commitment? A) TIME DURATION, DEPTH, WIDTH OF COMMITMENT, CUSTOMER SATISFACTION. B) DEPTH, WIDTH OF COMMITMENT. C) TIME DURATION, DEPTH, WIDTH OF COMMITMENT, EASY ACCESS. D) TIME DURATION, DEPTH, WIDTH OF COMMITMENT. Show Answer Correct Answer: D) TIME DURATION, DEPTH, WIDTH OF COMMITMENT. 28. The activities and techniques of determining the desired levels of items. A) Inventory Policies. B) Inventory Planning. C) Inventory Management. D) Inventory Shrinkage. Show Answer Correct Answer: B) Inventory Planning. 29. What is the amount deducted from the selling price for pay-ment within a specified time period, such as 10 days? A) Trade discount. B) Quality discount. C) Cash discount. D) Sells discount. Show Answer Correct Answer: C) Cash discount. 30. The main purpose of establishing a reorder point is to: A) Reduce the company's carrying costs. B) Avoid a stockout situation. C) Maintain adequate anticipation stock. D) Avoid purchasing too much inventory if projections are incorrect. Show Answer Correct Answer: B) Avoid a stockout situation. ← PreviousNext →Related QuizzesInventory Production QuizzesAccounting QuizzesInventory And Production Management Quiz 1Inventory And Production Management Quiz 3Inventory And Production Management Quiz 4Inventory And Production Management Quiz 5Inventory And Production Management Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books