FREE Financial Management For Project Managers Inventory Management Questions and Answers

Question 1

smoke, dust, gases, and seasoning-induced weight loss

Accepted Answer

Waste

Answer

Scrap

Answer

Spoilage

Answer

Defectives

Question 2

Item placement that can accidentally swap items is

Accepted Answer

Family grouping

Answer

Category mapping

Answer

Part grouping

Answer

ABC categorization

Question 3

Moving packed orders into shipping vehicles is called shipping cost.

Accepted Answer

Loading cost

Answer

Shipping cost

Answer

Picking cost

Answer

packing cost

Question 4

ABC analysis assumes

Accepted Answer

there are usually a few critical items, and  many items which are less critical

Answer

All items in inventory must be monitored very closely

Answer

the safety stock in terms of volume should be higher for a items than for C items

Answer

an item is critical if its usage is high

Question 5

Inventory turn-over

Accepted Answer

Cost of goods sold, average inventory at cost

Answer

Beginning inventory, total goods sold

Answer

Total goods sold ,cost of goods sold

Answer

Average inventory at cost ,ending inventory

Question 6

Which is "Waste in relation to material cost?"

Accepted Answer

Smoke

Answer

All of these

Answer

Portion of the process loss which can be converted into a finished product

Answer

Sawdust in timber industry

Question 7

Which system assigns numeric or mnomenic codes to parts?

Accepted Answer

Symbolic

Answer

None of these

Answer

engineering drawing number

Answer

Arbitrary

Question 8

In relation to ABC analysis, which of the following claims is untrue?

Accepted Answer

ABC analysis is based on the presumption that all items must be tighty controlled to produce important cost savings.

Answer

In ABC analysis "C" Items have minimal records periodic review and simple controls.

Answer

In ABC analysis "A" Items are tighty controlled have accurate records and receive regular review by major decision makers.

Answer

ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings.

Question 9

Utilizing the weighted average approach, determine the closing stock value from the information below: Opening balance on January 1, 2014: 50 units at Rs. 4. Receipts: 100 units for Rs. 512 on January 5, and 200 units at Rs. 4.50 on January 11. Issues: 30 units on January 2, 2014 150 units as of January 18, 2014

Accepted Answer

Rs.786

Answer

Rs.700

Answer

Rs. 805

Answer

Rs. 765

Question 10

In relation to "Spoilage," which of the following accounting treatments is correct?

Accepted Answer

All of these.

Answer

If spoilage occurs on a specific job/special order it is charged to that job itself.

Answer

It may be charged to factory over-heads so that the loss is borne by all products.

Answer

Loss due to spoilage can be debited to the job/product/process in which it occurred.