Top 50+ Solved Inventory Control MCQ Questions Answer
Q. The receipt of…………….is the first step in purchase procedure.
a. Invoice
b. Material requisition
c. Purchase requisition
d. none
Q. The Purchase…………….is a contractual document which authorizes the supplier to supply thematerial.
a. Note
b. Requisition
c. Order
d. none
Q. ……………….formsthe basis of entries to the stores ledger.
a. Purchase Order
b. Goods Received Note
c. Purchase Requisition
d. none
Q. The stock level at which the storekeeper initiates purchase requisitions is known as………….
a. Re-order level
b. Danger level
c. Maximum stock level
d. none
Q. …………………….is a buffer stock level or safety stock level under which the stock should not beallowed to fall.
a. Average stock level
b. Maximum stock level
c. Minimum stock level
d. none
Q. The average stock level is………….. units if the maximum stock level is 2475 units and theminimum stock level is 855 units.
a. 1565
b. 1665
c. 1465
d. none
Q. The optimum level of inventory is popularly referred to as the ………..
a. Minimum stock level
b. Re-order stock level
c. Economic Order Quantity
d. none
Q. In the formula of Economic Order Quantity, the alphabet ‘O’ stands for………….
a. Ordering level
b. Ordering Cost
c. Ordering & Carrying Cost
d. none
Q. Economic Order Quantity is he tool for controlling……………….
a. Inventory
b. Labour
c. Expenses
d. none
Q. Which of the following is not an inventory?
a. Machines
b. Raw material
c. Finished products
d. Consumable tools
Q. The following classes of costs are usually involved in inventory decisions except
a. Cost of ordering
b. Carrying cost
c. Cost of shortages
d. Machining cost
Q. The cost of insurance and taxes are included in
a. Cost of ordering
b. Set up cost
c. Inventory carrying cost
d. Cost of shortages
Q. ‘Buffer stock’ is the level of stock
a. Half of the actual stock
b. At which the ordering process should start
c. Minimum stock level below which actual stock should not fall
d. Maximum stock in inventory
Q. The minimum stock level is calculated as
a. Reorder level – (Normal consumption x Normal delivery time)
b. Reorder level + (Normal consumption x Normal delivery time)
c. (Reorder level + Normal consumption) x Normal delivery time
d. (Reorder level + Normal consumption) / Normal delivery time
Q. Which of the following is true for Inventory control?
a. Economic order quantity has minimum total cost per order
b. Inventory carrying costs increases with quantity per order
c. Ordering cost decreases with lo size
d. All of the above