This quiz works best with JavaScript enabled. Home > Accounting > Inventory Production > Inventory And Production Management > Inventory And Production Management – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inventory And Production Management Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An inventory valuation method that assumes stock that was purchased first , is also the first to be sold. A) Pull in Pull Out. B) Roll on Roll Out. C) Last in Last Out. D) First in First Out. Show Answer Correct Answer: D) First in First Out. 2. A check used to move merchandise quickly to the sales floor is known as: A) Quality check. B) Blind check. C) Spot check. D) Direct check. Show Answer Correct Answer: B) Blind check. 3. What process does Toyota use to ensure inventory efficiency? A) Periodic inventory. B) Kanban. C) Perpetual inventory. D) Buffer stock. Show Answer Correct Answer: B) Kanban. 4. The total time it takes from placing an order to receiving the order is known as: A) Order time. B) Re-order time. C) Lead time. D) Stock time. Show Answer Correct Answer: C) Lead time. 5. What key aspect of inventory is focused on quickly and efficiently book-in, put away, pick, pack and ship inventory as and when needed at your various locations? A) Techniques. B) Tracking. C) Systems and Tools. D) Purchasing. Show Answer Correct Answer: A) Techniques. 6. What is the function of inventory control? A) Maintain customer satisfaction so as not to complain. B) Manage costs incurred by the company. C) Guarantee the availability of goods needed. D) Guarantee a high level of service at a reasonable cost. Show Answer Correct Answer: D) Guarantee a high level of service at a reasonable cost. 7. Which inventory method would be best used by someone selling dairy products to manage and evaluate inventory? A) JIC inventory. B) HIFO inventory. C) LIFO inventory. D) FIFO inventory. Show Answer Correct Answer: D) FIFO inventory. 8. When purchasing ..... are critical A) Businesses. B) Objectives. C) Order points. D) Levels. Show Answer Correct Answer: C) Order points. 9. Set up costs are analyse to which one of these costs A) Ordering. B) Shortage. C) Excess. D) Holding. Show Answer Correct Answer: A) Ordering. 10. A good match for a vendor has ..... A) Reliability. B) Close proximity. C) Good and applicable discounts. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Stock losses will result in ..... A) An increase in Revenue. B) An increase in Assets. C) An increase in Expenses. D) An decrease in Liabilities. Show Answer Correct Answer: C) An increase in Expenses. 12. Goods in various stages of completion throughout the plant. A) Work In Process. B) Finished Goods. C) Inventory. D) Physical Inventory. Show Answer Correct Answer: A) Work In Process. 13. What is the time period required from the request for goods to be received and ready for use? A) Order Time. B) Waiting Time. C) Just in Time. D) Lead Time. Show Answer Correct Answer: D) Lead Time. 14. An inventory control system that uses computer chips attached to inventory items to track inventory is: A) Unit control system. B) RFID system. C) Point of sale software. D) Manual tag system. Show Answer Correct Answer: B) RFID system. 15. What are the negative impacts of inventory procurement? A) Maintain production continuity. B) Minimizing the scarcity of goods. C) Speed of support to customers. D) Accumulation of working capital. Show Answer Correct Answer: D) Accumulation of working capital. 16. Natural abilities an individual is born with A) Talents. B) Traits. C) Transformational Leadership. D) Laissez-Faire Leadership. Show Answer Correct Answer: A) Talents. 17. What is a discount that a vendor gives to a buyer who places large orders? A) Quality discount. B) Cash discount. C) Quantity discount. D) Sells discount. Show Answer Correct Answer: C) Quantity discount. 18. Which of the following is NOT a common cause of inventory shrinkage? A) Theft. B) Unexpectedly high sales. C) Data input errors. D) Product breakage. Show Answer Correct Answer: B) Unexpectedly high sales. 19. What key aspect of inventory is focused on visibility on where exactly your inventory is as well as additions (purchases) and subtractions (sales), to give as close to a live stock figure as possible. A) Tracking. B) Accounting. C) Analysis. D) Systems and Tools. Show Answer Correct Answer: A) Tracking. 20. Given the following percentage costs of carrying inventory, calculate the annual carrying cost if the average inventory is IDR1 million. Capital costs are 10%, storage costs are 6%, and risk costs are 7%. A) IDR100, 000. B) IDR230, 000. C) IDR200, 000. D) IDR250, 000. Show Answer Correct Answer: B) IDR230, 000. 21. What is the formula for calculating the HPP Ratio? A) (COGS-Sales) x 100%. B) HPP x 100%. C) (COGS + Sales) x 100%. D) (COGS:Sales) x 100%. Show Answer Correct Answer: D) (COGS:Sales) x 100%. 22. Inventory policy information requires understanding the role of inventory in? A) Manufacturing and distribution. B) Distribution and logistics environment. C) Manufacturing and logistics environment. D) Distribution. Show Answer Correct Answer: C) Manufacturing and logistics environment. 23. These are places where goods remain in their original crates, waiting to be broken down into more usable quantities. A) Staging areas. B) Assembly areas. C) Bulk storage areas. D) Packing areas. Show Answer Correct Answer: C) Bulk storage areas. 24. Which one of the statement below is true? Function of Inventory. A) To take advantages of EOQ. B) To hedge against price hike. C) To slow production requirement. D) To fulfill production from supplier. Show Answer Correct Answer: B) To hedge against price hike. 25. The ideal order quantity a company should purchase for its inventory given a cost set of production, demand rate, and other variables is known as: A) Inventory control. B) Reorder point. C) Economic order quantity. D) Anticipation stock. Show Answer Correct Answer: C) Economic order quantity. 26. What is the name of method under discount quantity? A) Holding cost same, Holding cost different. B) Holding cost constant, Holding cost not constant. C) Holding cost similar, Holding cost rare. D) Holding cost flexible, Holding cost permanent. Show Answer Correct Answer: B) Holding cost constant, Holding cost not constant. 27. What type of inventory management is anything you use for packing and protecting goods-either while in storage, or during shipping to customers? A) School Supplies. B) Raw Materials. C) Packing Materials. D) Construction Materials. Show Answer Correct Answer: C) Packing Materials. 28. Just-in-time inventory management is when: A) Stock is delivered quickly. B) The business does not have to order any stock. C) Stock is ordered just in time for when it is required. D) Customers have a short period of time to order their stock. Show Answer Correct Answer: C) Stock is ordered just in time for when it is required. 29. ..... are a form of guaran-teed payment. A) Secured funds. B) Basic funds. C) Invoices. D) Tax funds. Show Answer Correct Answer: A) Secured funds. 30. Which of the following is correct, about your Professor? A) Mr. Reyes is a Theater and Arts Teacher at National University. B) Mr. Reyes is a Recording Artist and Vlogger. C) Mr. Reyes was born December 1997. D) Mr Reyes is known to be the girlfriend of rapper Skusta Clee. Show Answer Correct Answer: C) Mr. Reyes was born December 1997. ← PreviousNext →Related QuizzesInventory Production QuizzesAccounting QuizzesInventory And Production Management Quiz 1Inventory And Production Management Quiz 2Inventory And Production Management Quiz 4Inventory And Production Management Quiz 5Inventory And Production Management Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books