Top 150+ Solved Cost and Works Accounting 1 MCQ Questions Answer
Q. The contract is signed at the end of the:
a. Pre-award phase
b. Award phase
c. Post-award phase
d. Award cycle
Q. Definitive contract terms are spelled out in the:
a. Pre-award phase
b. Award phase
c. Post-award phase
d. Purchasing phase
Q. A bilateral RFP is preferred to an invitation to bid when:
a. Supplier and terms are specified
b. The product or service is relatively low value and readily available
c. The product or service has high value and is unique
d. The product or service has high value, but is easy to obtain
Q. Which one of the following is not included in the 5 R in purchasing?
a. Quality
b. Quantity
c. Price
d. None of these
Q. Which of the following is not a function of purchasing management?
a. Selecting the source
b. Placement of purchase order
c. Physical controls of material
d. None of these
Q. The purchase order form is designed by
a. Materials Manager
b. Purchase Manager
c. Marketing Manager
d. None of them
Q. The objective(s) of forward purchasing is / are
a. To guard against interruption in supply
b. To economize the use of storage space
c. To guard against the future rise in price
d. All of these
Q. JIT contributed to the
a. Reduced inventories and WIP
b. Reduced suppliers and vendors
c. Reduced information flows
d. Reduced manpower planning
Q. “Hedging” technique is used
a. When there is an organized commodity market
b. Where large quantities of a particular commodity are bought and sold
c. Both (a) and (b)
d. None of these
Q. Purchase Budget has an impact on
a. Profitability of the company
b. Materials Budget of the company
c. Bill of materials
d. All of these
Q. Right quality means
a. over specifying the quality standards for purchasers
b. under specifying the quality for purchasing
c. buying standard items
d. Buying quality which suits the needs without incurring extra cost to the company
Q. Purchase order is a legal binding contract only if it is
a. accepted by the supplier
b. acknowledged by the supplier
c. posted by the buyer
d. none of these
Q. The document prepared on receipt of materials in store is known as
a. MRN
b. GRN
c. Challan
d. Bill of materials.
Q. The system of purchasing from one’s customer preferred to others is known as
a. Forward Buying
b. Tender Buying
c. Reciprocal Buying
d. Blanket Order
Q. The purchasing view of the material master is relevant at what organizational level?
a. Company code
b. Client
c. Storage location
d. Plant