Materials Management Quiz - 5

1. The registered firms are required to submit security deposit which is required from unregistered firms.
[A]TRUE
[B]FALSE



2. Functionally critical parts require to be covered under cent per cent inspection
[A]TRUE
[B]FALSE



3. Codification avoids confusion and doubt caused by long description of items.
[A]TRUE
[B]FALSE



4. A firm engaged in custom-built-product, is usually plagued with obsolete material.
[A]TRUE
[B]FALSE



5. Negotiation should end up with an unhappy supplier.
[A]TRUE
[B]FALSE



6. Since stock-taking is a check on storekeeper, it should not be conducted by him.
[A]TRUE
[B]FALSE



7. In fixed-order interval system, order interval is fixed.
[A]TRUE
[B]FALSE



8. Pre-fixed qty. issue system is suitable for A-class items.
[A]TRUE
[B]FALSE



9. Telephonic quotations are useful when there is limited competition.
[A]TRUE
[B]FALSE



10. Cost of capacity which may be rendered idle if the item currently being manufactured in purchased needs to be added to the cost to buy.
[A]TRUE
[B]FALSE



11. Purchase cost is the price paid the supplier
[A]TRUE
[B]FALSE



12. Esteem value is paid by the supplier.
[A]TRUE
[B]FALSE



13. Vendors are not responsible for statutory approvals from government authorities.
[A]TRUE
[B]FALSE



14. Noting clerk examines bill of entry papers & if found in order signs the bill of entry.
[A]TRUE
[B]FALSE



15. Lead time information is required for determination of safety stock.
[A]TRUE
[B]FALSE