McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
………………………..is an element of material control |
| A. | Purchase Control |
| B. | Material Control |
| C. | Cost Control |
| D. | none |
| Answer» A. Purchase Control | |
| 2. |
Purchase of material a substantial of the company’s finance is committed which affects ………position of the company. |
| A. | Cash flow |
| B. | Fund Flow |
| C. | Balance – Sheet |
| D. | none |
| Answer» A. Cash flow | |
| 3. |
Purchase of right quantity of material avoids locking up of ……………. |
| A. | Working Capital |
| B. | Current assets |
| C. | Reserves and Surplus |
| D. | none |
| Answer» A. Working Capital | |
| 4. |
Effective purchase control prevents wastage and losses of material right from the purchase from their ………………. |
| A. | Consumption |
| B. | Wastage |
| C. | Storage |
| D. | none |
| Answer» A. Consumption | |
| 5. |
Purchase Control enables the management to reduce……….. |
| A. | cost of production |
| B. | Cost of material |
| C. | Cost of goods sold |
| D. | none |
| Answer» A. cost of production | |
| 6. |
effective purchase control fixes the responsibilities of………………. |
| A. | Operating Units |
| B. | Purchase Unit |
| C. | Cost Unit |
| D. | none |
| Answer» A. Operating Units | |
| 7. |
Basic objective of the effective …………………..is to ensure continuity of supply of requisite quality of material. |
| A. | Purchase Control |
| B. | Responsible Centre |
| C. | Cost Centre |
| D. | none |
| Answer» A. Purchase Control | |
| 8. |
……………….is specialized activity frequently carried on by a separate department under the control of buyer or purchasing officer. |
| A. | Purchasing |
| B. | Selling |
| C. | Costing |
| D. | none |
| Answer» A. Purchasing | |
| 9. |
The …………………………will in all his activities carry out the policy of his organization with regard o buying |
| A. | Purchasing Officer |
| B. | General Manager |
| C. | Head of the department |
| D. | none |
| Answer» A. Purchasing Officer | |
| 10. |
………………………….is of extreme importance particularly to a manufacturing concern. |
| A. | Purchasing |
| B. | Selling |
| C. | Costing |
| D. | none |
| Answer» A. Purchasing | |
| 11. |
Purchase manager must know the exact …………………….of materials which are used in the production. |
| A. | Specification |
| B. | Procedure |
| C. | Strategy |
| D. | modification |
| Answer» A. Specification | |
| 12. |
Purchasing department should purchase the material strictly as per ……………………….of the various department. |
| A. | requisition |
| B. | Bill book |
| C. | Balance Sheet |
| D. | Trading Account |
| Answer» A. requisition | |
| 13. |
………………..is an important element in purchase procedure. |
| A. | Time |
| B. | Demand |
| C. | Recording |
| D. | None of the above |
| Answer» A. Time | |
| 14. |
Preparation of…………………..is one of most important function of purchase Department. |
| A. | Purchase Budget |
| B. | Purchase Receipt |
| C. | Purchase Price |
| D. | Purchase Cost |
| Answer» A. Purchase Budget | |
| 15. |
For prompt and correct payment of purchase bills there should be close liaison with the …………..and ……..department. |
| A. | account and store |
| B. | account and sales |
| C. | sales and Purchase |
| D. | Administration and Purchase |
| Answer» A. account and store | |
| 16. |
……………………….guides to the purchase manager in knowing what he has to buy. |
| A. | Purchase budget |
| B. | Purchase price |
| C. | Purchase Cost |
| D. | Purchase Amount |
| Answer» A. Purchase budget | |
| 17. |
After receiving the ……………………..the Purchase department starts exploring the source of materials and suppliers. |
| A. | Purchase Requisition |
| B. | Purchase Data |
| C. | Sales Information |
| D. | Process Of Purchase |
| Answer» A. Purchase Requisition | |
| 18. |
An account payable is posted to accounting upon creation of the following document |
| A. | Purchase Requisition |
| B. | Purchase Order |
| C. | Good Receipt |
| D. | All of the above |
| Answer» D. All of the above | |
| 19. |
In which stage of the negotiation meeting are points of concession identified? |
| A. | probing |
| B. | closure |
| C. | agreement |
| D. | scratch bargaining |
| Answer» D. scratch bargaining | |
| 20. |
Which type of warranty is enacted if a service or product does not meet the level of quality specified in the contract? |
| A. | Implied warranty of merchantability |
| B. | Implied warranty of specified quality |
| C. | Express warranty |
| D. | none of the above |
| Answer» C. Express warranty | |
| 21. |
Which is not an element of procurement management? |
| A. | Purchasing |
| B. | Acquisition |
| C. | Marketing |
| D. | B and C |
| Answer» D. B and C | |
| 22. |
The purchasing cycle consists of all the following elements except? |
| A. | Defined need |
| B. | Transmit Need |
| C. | Inspection |
| D. | Price and Terms |
| Answer» C. Inspection | |
| 23. |
The cost of corrective action taken by the purchaser and chargeable to the supplier under the terms of the contract is: |
| A. | Payment authorization |
| B. | Bid cost considerations |
| C. | Release payment |
| D. | Back charge |
| Answer» D. Back charge | |
| 24. |
_________ is a narrative description of the work to be accomplished or resource to be supplied. |
| A. | Purchase order |
| B. | Level of effort work |
| C. | Scope of work |
| D. | Contract stipulation |
| Answer» C. Scope of work | |
| 25. |
By which means is a contractor able to control costs overruns due to changing requirements? |
| A. | Project data review |
| B. | Change order |
| C. | Change control |
| D. | Contract negotiations |
| Answer» C. Change control | |
| 26. |
__________ is a written order directing the contractor to make changes according to the provisions of the contract documents. |
| A. | Change order / purchase order amendment |
| B. | Contract order modifications |
| C. | Contractor claim |
| D. | Owner directive |
| Answer» A. Change order / purchase order amendment | |
| 27. |
__________ defines when the work is ready for or is being used for the purpose intended and is so certified. |
| A. | Final completion |
| B. | Substantial completion |
| C. | Final acceptance |
| D. | Mechanical completion |
| Answer» B. Substantial completion | |
| 28. |
__________ is a request for interim stoppage of work due to non conformance, funding or technical considerations. |
| A. | Bid protest |
| B. | Stop work order |
| C. | Notice to proceed |
| D. | Supplier default notice |
| Answer» B. Stop work order | |
| 29. |
The process that may be used by an unsuccessful supplier to seek remedy for a non award of work is: |
| A. | Bid protest |
| B. | Stop work order |
| C. | Back charge |
| D. | Contract dispute |
| Answer» A. Bid protest | |
| 30. |
The __________ specification describes, defines or specifies the goods / services to be supplied. Performance |
| A. | Functional |
| B. | Technical |
| C. | Bid |
| D. | General Requirements |
| Answer» C. Bid | |
| 31. |
The Bid Evaluation process is characterized by all of the following activities except? |
| A. | Evaluation of suppliers financial resources |
| B. | Ability to comply with technical specifications |
| C. | Delivery schedule and cost factors |
| D. | Competitors method of sourcing |
| Answer» D. Competitors method of sourcing | |
| 32. |
Which is not a consideration in a make or buy decision? |
| A. | Cost factors |
| B. | Sales volume |
| C. | Existence of sufficient administrative / technical personnel |
| D. | Political and social factors with the organization |
| Answer» B. Sales volume | |
| 33. |
There are four methods of government procurement. Which is not one of these methods? |
| A. | Assistance |
| B. | Sealed bidding |
| C. | Competitive proposals |
| D. | Acquisition |
| Answer» D. Acquisition | |
| 34. |
A purchasing operation does not contain this classification of work? |
| A. | Management |
| B. | Buying |
| C. | Follow-up and expedition |
| D. | Marketing |
| Answer» D. Marketing | |
| 35. |
__________ is a register of suppliers invited to submit bids for goods / services as specified. |
| A. | Procurement invitation |
| B. | Bid list |
| C. | Resource identification |
| D. | Supplier's rankings |
| Answer» B. Bid list | |
| 36. |
__________ is a formal invitation to submit a price for goods and / or services as specified. |
| A. | Request for quotation |
| B. | Bid response |
| C. | Intention to bid |
| D. | Request for proposal |
| Answer» D. Request for proposal | |
| 37. |
Which contract type should be used by the owner on a high risk project? |
| A. | Cost plus percentage of cost |
| B. | Cost plus incentive fee |
| C. | Lump sum |
| D. | Fixed price plus incentive fee |
| Answer» C. Lump sum | |
| 38. |
Cost reimbursable contracts are equivalent to: |
| A. | Progress payment contracts |
| B. | Extra work order contracts |
| C. | Cost plus contracts |
| D. | Fixed price contracts |
| Answer» C. Cost plus contracts | |
| 39. |
Fixed price and incentive type contracts place responsibility for performance and financial risks associated with delay or non-performance on the: |
| A. | Contractor |
| B. | Owner |
| C. | Lending institution |
| D. | Project manager |
| Answer» A. Contractor | |
| 40. |
__________ is based on information gathered and analyzed about demand and supply. this forecast provides a prediction of short and long term prices and the underlying reasons for those trends. |
| A. | Sales forecast |
| B. | Consumer price index |
| C. | Production forecast |
| D. | Price forecast |
| Answer» A. Sales forecast | |
| 41. |
The contract is signed at the end of the: |
| A. | Pre-award phase |
| B. | Award phase |
| C. | Post-award phase |
| D. | Award cycle |
| Answer» D. Award cycle | |
| 42. |
Definitive contract terms are spelled out in the: |
| A. | Pre-award phase |
| B. | Award phase |
| C. | Post-award phase |
| D. | Purchasing phase |
| Answer» C. Post-award phase | |
| 43. |
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 |
| Answer» C. The product or service has high value and is unique | |
| 44. |
Which one of the following is not included in the 5 R in purchasing? |
| A. | Quality |
| B. | Quantity |
| C. | Price |
| D. | None of these |
| Answer» D. None of these | |
| 45. |
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 |
| Answer» D. None of these | |
| 46. |
The purchase order form is designed by |
| A. | Materials Manager |
| B. | Purchase Manager |
| C. | Marketing Manager |
| D. | None of them |
| Answer» B. Purchase Manager | |
| 47. |
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 |
| Answer» A. To guard against interruption in supply | |
| 48. |
JIT contributed to the |
| A. | Reduced inventories and WIP |
| B. | Reduced suppliers and vendors |
| C. | Reduced information flows |
| D. | Reduced manpower planning |
| Answer» A. Reduced inventories and WIP | |
| 49. |
“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 |
| Answer» C. Both (a) and (b) | |
| 50. |
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 |
| Answer» D. All of these | |
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