Materials Management Quiz - 2

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



2. Deterioration & Obsolescence cost are similar.
[A]TRUE
[B]FALSE



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



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



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



6. Value analysis is the cost reduction technique.
[A]TRUE
[B]FALSE



7. Cancellation of orders on flimsy ground is unethical.
[A]TRUE
[B]FALSE



8. A company wishing to use preferred numbers must decide first the smallest size to be made, then largest size to be made and then the total no. of sizes to be made.
[A]TRUE
[B]FALSE



9. JIT purchasing is indirectly the activity of pushing inventory on the suppliers.
[A]TRUE
[B]FALSE



10. Coal and coke gas used for power generation and process heating are direct materials.
[A]TRUE
[B]FALSE



11. Annual total cost remain constant though stock-turn over rate changes.
[A]TRUE
[B]FALSE



12. Single tender system is used when there is only one supplier of the item.
[A]TRUE
[B]FALSE



13. Small parcels, Samples, gifts which are received from other countries provisions of import policy & customs not applied on them.
[A]TRUE
[B]FALSE



14. Black listing may be for a limited period or for an indefinite period.
[A]TRUE
[B]FALSE



15. Metals should be stored at least 15-20 cm above the ground.
[A]TRUE
[B]FALSE