Question65:-The following is not a method of inventory control
A:-ABC Analysis
B:-Economic value added
C:-Prefectural inventory system
D:-Economic order quantity
Correct Answer:- Option-B

Question66:- is the first activity of purchasing cycle.
A:-Communicating requirement to the purchase
B:-Source Selection and development
C:-Recognizing the need for procurement
D:-Inspection of goods
Correct Answer:- Option-C

Question67:-XYZ Ltd. is currently producing a component at Rs.9 per unit (Variable
cost is Rs.6, and Fixed is Rs.3). The selling price of the component is Rs.12. Now Mr.
A, a supplier has agreed to supply the component at Rs.7 per unit and the company
has given the order to Mr. A. What is the amount of increase or decrease in profit
per unit to XYZ Ltd. after the deal?

A:-Increase in profit Rs.2
B:-Increase in profit Rs.5
C:-Decrease in profit Rs.2
D:-Decrease in profit Rs.1
Correct Answer:- Option-D

Question68:-The material budgets in a typical manufacturing firm involve a
determination of :

(i) The quantities and cost of raw materials to be used.

(11) The quantities and value of materials to be carried in the inventory.
(111) The quantities and cost of materials to be purchased.

(iv) The quantity and value of finished goods to be carried in the inventory.

A:-(i), (ii) and (iii)
B:-(i) and (ii)
C:-(i), (ii), (iii) and (iv)
D:-(ii), (iii) and (iv)
Correct Answer:- Option-C
Question69:-Materials management mainly focuses on :
A:-Production of finished goods and it's sale in the appropriate market

B:-Management of raw material or components required for continuous
production

C:-Management of logistics and supply chain activites for timely market reach

D:-Distribution of materials to the seller and distributor for smooth functioning