Material Management Quiz - 1

1. Conformance to ________ is checked against component drawings.
[A]Dimensions
[B]Process
[C]Supply Chain
[D]Inventory



2. The inventories which refer to the maintenance, repair and operation supplies which are consumed during process of manufacturing but do not become part of the product is
[A]
[B]
[C]MRO inventories
[D]



3. Import substitution in reality should be looked upon as "Import avoidance"
[A]TRUE
[B]FALSE
[C]
[D]



4. Deterioration & Obsolescence cost are similar.
[A]TRUE
[B]FALSE
[C]
[D]



5. Customs duty is charged on the imported goods as per ________.
[A]RBI Rules
[B]EXIM Rules
[C]GOI Rules
[D]Customs tariff rules



6. In a contract buyer has right to all except
[A]Examine the goods
[B]Reject the goods delivered in wrong quantity
[C]Sue for interest of buyer
[D]Reject non conforming goods



7. ________ of the department refers to the placement of the department in the structure of the company.
[A]Location
[B]Status
[C]Cost
[D]Profit



8. Purchasing policies are implemented by framing procedures and rules.
[A]TRUE
[B]FALSE
[C]
[D]



9. Black bituminous paint should be applied to rubber parts.
[A]TRUE
[B]FALSE
[C]
[D]



10. The following actions would help to improve effectiveness of materials planning except
[A]Accurate forecasting
[B]Increase in lead time
[C]Computerization
[D]Shorter materials plan period



11. OEM discount is given by the supplier with a view to widen customer's base.
[A]TRUE
[B]FALSE
[C]
[D]



12. A buyer gives wrong idea to his supplier about his requirements or show a fictitious figure to get some price discount is called as
[A]Misrepresentation of facts
[B]Inflated Report
[C]Incorrect estimation
[D]Normal practice to get discount



13. Purchasing and procurement cost reduction is possible through all of the following except
[A]Blanket orders
[B]Green purchasing
[C]System contracting
[D]Normal order



14. ________ department in almost all companies is the biggest spending department and the custodian of company's purse.
[A]Marketing
[B]HR
[C]IT
[D]Purchasing



15. ________ find their use in identification of raw materials, lubricants, pipelines etc.
[A]Colour codes
[B]Bar codes
[C]System codes
[D]Process codes