170+ Industrial Engineering Solved MCQs

1.

For which of the following situations, linear programming can be applied?

A. Maximising material insulation
B. Procurement problems
C. Scheduling of production to meet sales forecast
D. All of the above
E. None of the above
Answer» D. All of the above
2.

Which one of the following is not a job evaluation criteria?

A. Classification
B. Needs of the worker
C. Point rating
D. Ranking
E. Factor of comparison
Answer» B. Needs of the worker
3.

The standards followed in Russia are known as

A. JIS standards
B. AFNOR standards
C. TASS standards
D. GOST standards
E. None of the above
Answer» D. GOST standards
4.

Which of the following statement about linear programming is incorrect?

A. It is applicable to linear models only
B. It gives dynamic solution
C. No solution is available to time spans shorter than periods in model
D. Uncertainties in the future cannot conveniently be incorporated in model.
E. None of the above
Answer» B. It gives dynamic solution
5.

Like many role playing situations, business games have never been

A. Successful
B. Validated
C. Worthwhile
D. Inexpensive
E. None of the above
Answer» B. Validated
6.

In a thriving company, human resource planning

A. Generally applies to upper management
B. Is initiated whenever a problem arises
C. Is continuously at work
D. Is a static system
E. Any combination of these
Answer» C. Is continuously at work
7.

Exit interviews

A. Are interviews held with employees intending to leave an organisation
B. Are interviews of the persons working in plant, conducted outside the factory premises, to know about any grivances
C. Are interviews orally conducted and never brought on rocords
D. Are interviews hel outside the factory premises
E. Are interviews held during lockout or strike period
Answer» A. Are interviews held with employees intending to leave an organisation
8.

The average revenue curve of a firm is

A. the curve representing the cost per unit of output
B. the same as the demand curve of consumers for the firm's product
C. total receipts realised by the firm
D. B and C above
E. None of the above
Answer» B. the same as the demand curve of consumers for the firm's product
9.

In a break even chart, abscissa represents

A. Constant expenses
B. Total expenses
C. Profits
D. Total sales
E. Amount in rupee
Answer» E. Amount in rupee
10.

A merchant who has debts of Rs. 43,250 has gone bankrupt and can pay of only 15 paise on the rupee. How much will his creditors receive?

A. Rs. 36762.50
B. Rs. 6487.50
C. Rs. 10812.50
D. Rs. 8650.00
E. Rs. 4325.00
Answer» B. Rs. 6487.50
11.

Equity means

A. Money value exclusive of claims against it
B. Money value of inclusive of claims
C. Foreign investment
D. Loan against mortgage of property
E. None of the above
Answer» A. Money value exclusive of claims against it
12.

An allowance given for prompt payment is

A. Annuity
B. Surcharge
C. Abatement
D. Authority
E. None of the above
Answer» C. Abatement
13.

A critical path has

A. zero slack
B. minimum slack
C. maximum slack
D. infinite slack
E. None of the above
Answer» A. zero slack
14.

By technological innovations if the cost of raw material is reduced, this will result in

A. High break even point
B. Lower profits
C. Lower break even point
D. Reduced constant expenses
E. Increases constant expenses
Answer» C. Lower break even point
15.

A competitive firm will maximise profits at the output where

A. the difference between price and marginal cost is highest
B. the difference between marginal revenue and price is highest
C. price is higher than the average total cost by the largest possible amount
D. the excess of total revenue over the total cost is greatest.
E. None of the above
Answer» D. the excess of total revenue over the total cost is greatest.
16.

Of the following, which is NOT an essential assumption of the marginal utility theory of consumer demand?

A. Small income of the consumer
B. The fact that goods and services have a price
C. The fact that as more goods and services are purchased by the consumer, these goods and services yield decreasing amounts of marginal utility
D. Rationality of the consumer
E. None of the above
Answer» D. Rationality of the consumer
17.

A dummy activity completes the logical concept and it has

A. no duration
B. very short duration
C. proportional duration
D. long duration
E. None of the above
Answer» A. no duration
18.

Which of the following does not constitute the direct cost of a project?

A. Cost of materials
B. Wages of labour
C. Penalty imposed by Government
D. All of the above
E. None of the above
Answer» C. Penalty imposed by Government
19.

Which of the following is a resource?

A. Time
B. Men
C. Money
D. All of the above
E. None of the above
Answer» D. All of the above
20.

Which of the following have training and development responsibilities?

A. Top line executive
B. Personnel staff
C. Each and every employee
D. Immediate supervisors
E. All of the above
Answer» E. All of the above
21.

Which one of the following statements is not true about a normal distribution?

A. The mode and the mean are equal
B. It is represented by a bell mouthed curve
C. It has a one mode
D. It has two modes
E. The mean and the median are equal
Answer» D. It has two modes
22.

In tool signature the last figure represents

A. Cutting speed
B. Operation for which tool is made
C. Limiting rpm
D. Nose radius
E. Tool material
Answer» D. Nose radius
23.

An organisation may decide to buy a component from outside when

A. existing production facilities are limited
B. there is need to maintain stability in employment
C. cost is less to buy as compared to production cost
D. All of the above
E. None of the above
Answer» D. All of the above
24.

Of the following, which one is not a factor that would result in economics of scale?

A. More efficient use of the firm's plant
B. More efficient use of the firm's by products
C. More specialisation and division of labour
D. Lower borrowing cost when the firm borrows
E. None of the above
Answer» A. More efficient use of the firm's plant
25.

Which of the following methods are used for system analysis

A. Linear programming
B. Waiting line model
C. Simulation model
D. All of the above
E. None of the above
Answer» D. All of the above
26.

Which of the following properties is not subjected to depreciation?

A. Land
B. Automotive equipment
C. Buildings
D. Manufacturing machinery
E. None of the above
Answer» A. Land
27.

Flatted roof buildings are preferred for

A. electronic industries
B. foundries
C. automobiles assembly lines
D. rolling mills
E. None of the above
Answer» A. electronic industries
28.

Escrow means

A. A property held by a third person forcing the creditors to fulfil the obligation of the creditor
B. A property attached by the court order
C. A property lost in transit or fire for which claim from insurance company is due
D. Goodwill earned by a company
E. None of the above
Answer» A. A property held by a third person forcing the creditors to fulfil the obligation of the creditor
29.

If the average interest rate is 12% and depreciation is to be accounted for by straight line method at 10%, which of the following equipment will be most economical?

A. Initial cost Rs. 4000 Annual disbursements Rs. 6000
B. Initial cost Rs. 5500 Annual disbursements Rs. 4000
C. Initial cost Rs. 6000 Annual disbursements Rs. 3880
D. Initial cost Rs. 5000 Annual disbursements Rs. 3500
E. Initial cost Rs. 7000 Annual disbursements Rs. 2500
Answer» E. Initial cost Rs. 7000 Annual disbursements Rs. 2500
30.

Which one of the following is not an incentive plan?

A. Straight piece work with guaranteed base
B. Straight salary
C. Straight piece work
D. Halsey 50-50 plan
E. 100% bonus plan
Answer» B. Straight salary
31.

Which one of the following industries is least affected by the business cycle?

A. Construction industry
B. Food processing
C. Ship building
D. Iron and steel
E. Textile
Answer» B. Food processing
32.

If a reduction in prices increases revenue, then the demand curve is said to be

A. Either elastic or inelastic
B. Elastic
C. Inelastic
D. Not determinable from given data
E. Unitary
Answer» B. Elastic
33.

Choose the correct statement.

A. CPM and PERT are event oriented techniques
B. CPM and PERT are activity oriented techniques
C. CPM is an activity oriented technique while PERT is an event oriented technique
D. None of the above
E. Supply and demand conditions
Answer» C. CPM is an activity oriented technique while PERT is an event oriented technique
34.

ABC analysis is used in

A. CPM
B. PERT
C. Inventory control
D. All of the above
E. None of the above
Answer» C. Inventory control
35.

The substitution effect works to encourage a consumer to purchase more of as product when the price of tha good is falling because

A. The consumer's real income has increased
B. The consumer's real income has decreased
C. The product is now less expensive than before
D. Other products are now less expensive than before
E. None of the above
Answer» C. The product is now less expensive than before
36.

In long run

A. fixed costs will be greater than variable costs
B. variable costs will be greater than fixed costs
C. all costs are variable costs
D. all costs are fixed costs
E. None of the above
Answer» C. all costs are variable costs
37.

If we assume that price decreases as total expenditure increases, we may conclude that

A. elasticity of demand is greater than unity
B. elasticity of demand is less than unity
C. elasticity of demand is equal to unity
D. elasticity of demand is a function of market trends
E. None of the above
Answer» A. elasticity of demand is greater than unity
38.

Which of the following represents the reduction in duration?

A. Crushing
B. Negative slack
C. Variance
D. All of the above
E. None of the above
Answer» A. Crushing
39.

A process layout is generally suggested for

A. Jobbing work
B. Batch production
C. Planned production
D. Discontinuous production
E. None of the above
Answer» B. Batch production
40.

The remuneration factor which usually hs the greatest effect on the final pay structure is

A. Prevailing pay expensation criteria
B. Payment method
C. Union bargaining power
D. Incentives
E. None of the above
Answer» A. Prevailing pay expensation criteria
41.

Systematic apratisal of each job in the organisation to determine its comparative value, is known as

A. Job evaluation
B. Job specification
C. Incentive plan
D. Standardisation
E. Regularisation
Answer» A. Job evaluation
42.

If D = duration, EF = earliest finish time, ES = earliest start time, LF = latest finish time, LS = latest start time, which relationship does not hold?

A. EF = D - ES
B. EF = D + ES
C. LF = LS + D
D. None of the above
E. Supply and demand conditions
Answer» A. EF = D - ES
43.

Average fixed cost

A. falls as long as output rises
B. rises as long as output rises
C. is determined by adding average variable cost and average total cost
D. is cut by marginal cost at its lowest point
E. None of the above
Answer» A. falls as long as output rises
44.

Injunction is

A. Permanent closure of a establishment
B. Lock out of an establishment
C. A court decision
D. A memorandum
E. An award
Answer» C. A court decision
45.

A product layout is generally suggested for

A. Jobbing work
B. Batch production
C. Efficien, machine utilization criteria
D. Continuous production
E. All of the above
Answer» D. Continuous production
46.

Monte Carlo simulation of queues is used when

A. arrival time distributions are not standard
B. service time distributions are not standard
C. mathematical analysis cannot be adopted
D. All of the above
E. None of the above
Answer» D. All of the above
47.

Multi-storey buildings are used for

A. chemical plants
B. total mills
C. engineering industries
D. All of the above
E. None of the above
Answer» A. chemical plants
48.

In which operation the horse power required to remove one cubic centimetre of material (soft steel) per minute under average conditions will be maximum

A. Drilling
B. Turning
C. Grinding
D. Shaping
E. Milling
Answer» C. Grinding
49.

National income differs from net national product by

A. Depreciation amount
B. Indirect business terms
C. Savings
D. Investments
E. All of the above
Answer» B. Indirect business terms
50.

Bankrupt is one who

A. Is visiting foreign universities now and often
B. Surrenders all his assets to the court for distribution to his creditors and is unable to pay his debts
C. Is unable to purchase things
D. Construction industry
E. Is unable to sell things
Answer» B. Surrenders all his assets to the court for distribution to his creditors and is unable to pay his debts
51.

OR was developed

A. during World War I
B. during World War II
C. In the 1950's
D. In the 1960's
E. None of the above
Answer» A. during World War I
52.

Which of these training techniques would most likely be evaluated by participant reaction?

A. Apprenticeship
B. Sensitivity training
C. Programmed instructions
D. On the job
E. Demonstration and example
Answer» B. Sensitivity training
53.

During a survey conducted by India Today it was found that the salary of the engineer who graduated 5 years ago, is Rs. 20,000 per year and that the median salary is Rs. 16000 per year. The distribution curve is

A. slightly skewed to the right
B. slightly skewed to the left
C. normal
D. highly skewed to the right
E. None of the above
Answer» D. highly skewed to the right
54.

In case the probability factor is zero, it can be concluded that

A. the project is bound to fail
B. the chances of completion of the project are 100%
C. the chances of completion of the project are 50%
D. the chances of completion of the project are less than 50%.
E. None of the above
Answer» C. the chances of completion of the project are 50%
55.

Bar chart and PERT are techniques of

A. contract planning
B. construction management
C. monitoring and control of a project
D. None of the above
E. Supply and demand conditions
Answer» C. monitoring and control of a project
56.

Which of the following is not a part of recruitment process?

A. Group discussion
B. Personal interview
C. Trade test
D. Exit interview
E. Written test
Answer» D. Exit interview
57.

In ABC analysis which class of items are generally large in number?

A. A
B. B
C. C
E. None of the above
Answer» C. C
58.

A coloth dealer has to place an order for a new fashioned ladies sarees, but he understands that it would be outdated fairly soon. Further, he does not know the exact demand of the dress. His decision for stock will be

A. decision under certainty
B. decision under uncertainty
C. decision under risk
D. decision under conflict
E. None of the above
Answer» B. decision under uncertainty
59.

Planned progression is most closely related to

A. Job enrichment
B. Job laddering
C. Job displacement
D. Job enlargement
E. Job rotation
Answer» E. Job rotation
60.

Which one of the following factors does not provide funds for the mortgage market?

A. Mutual savings banks
B. Pedsion funds
C. Commercial banks
D. Rs. 1300
E. Mutual funds
Answer» E. Mutual funds
61.

Which of the following is a direct tax

A. Excise duty
B. Entertainment tax
C. Estate duty
D. Motor vehicle licence duty
E. All of the above
Answer» B. Entertainment tax
62.

Which of the following was not included as a factor or variable which has an effect on personnel forecasting techniques?

A. Supply and demand conditions
B. Management philosophy
C. Technological changes
D. Amount of production
E. Carrier planning
Answer» B. Management philosophy
63.

Which of the following chart is not used in work study

A. Man machine chart
B. Flow process chart
C. Operation process chart
D. Gantt chart
E. None of the above
Answer» D. Gantt chart
64.

In tool signature the first figure represents

A. Back rake angle
B. End relief angle
C. Side rake angle
D. Side cutting edge angle
E. Side relief angle
Answer» A. Back rake angle
65.

With high speed steel tools the back rake angle is usually zero while machining

A. Cast iron
B. Hand steel
C. Brass
D. Soft steel
E. Aluminium
Answer» C. Brass
66.

The object of plant layout could be

A. to reduce material handling cost
B. for effective utilisation of space
C. to increase production
D. any of the above
E. None of the above
Answer» D. any of the above
67.

Under Emerson's efficiency plan an incentive is paid to a worker whose output exceeds

A. 67%
B. 75%
C. 80%
D. 100%
E. None of the above
Answer» A. 67%
68.

In the long run equilibrium of a competitive firm, which one of the following will not hold true?

A. Price will equal marginal cost
B. Marginal cost will equal average cost
C. Price will equal average cost
D. Prices will equal average variable cost
E. None of the above
Answer» D. Prices will equal average variable cost
69.

Which of the following is unaboidable delay?

A. Waiting for raw material
B. Non-availability of inspection gauge
C. Non-availability of power
D. Tool breakage
E. None of the above
Answer» C. Non-availability of power
70.

A period of reduced economic activity is called

A. Peer railing
B. Depreciation
C. Appreciation
D. Inflation
E. Recession
Answer» E. Recession
71.

Tariff means

A. A tax
B. An examption
C. A bonus
D. A subsidy
E. None of the above
Answer» A. A tax
72.

In motion and time study which of the following is used in product analysis?

A. Process chart
B. Work place layout
C. Man operation chart
D. Multi-man process chart
E. All of the above
Answer» A. Process chart
73.

Real wages represent

A. Wages inclusive of fringe benefits
B. The net take home wages
C. The gross wages carned by an employee
D. The purchase power of money wages
E. The total wages camed including perquisites
Answer» D. The purchase power of money wages
74.

A machine costing Rs. 8500 will have a scrap value of Rs. 300. Machines of this class have a working hour average life of 25000 hours. What will be the depreciation charge at the end of the first year if the machine is operated for a total duration of 1500 hours?

A. Rs. 548.50
B. Rs. 600.00
C. Rs. 492.00
D. Rs. 542.00
E. Rs. 692.00
Answer» C. Rs. 492.00
75.

Which of the following is not an advantage resulting from a company's training its employees?

A. Increased manufacturing flexibility
B. Less employee obsolescence
C. Increased productivity
D. Supply and demand conditions
E. Improved morale
Answer» A. Increased manufacturing flexibility
76.

A dummy activity

A. has no sequence and can be easily fitted anywhere
B. has only a head event but no tail event
C. has no tan event but only a head event
D. neither requires any resources nor any time
E. None of the above
Answer» D. neither requires any resources nor any time
77.

An oligopoly in industry occurs where there are (is)

A. Few buyers
B. One buyer
C. Few sellers
D. One seller
E. Both few sellers and few buyers
Answer» C. Few sellers
78.

Which of the following depicts "joint demand"

A. Aeroplanes and trains
B. Magazines and newspapers
C. Ball pen and refill
D. Lipstick and nail polish
E. All of the above
Answer» C. Ball pen and refill
79.

As the value of variance increases

A. uncertainty decreases
B. uncertainty increases
C. uncertainty remains unaffected
E. None of the above
Answer» B. uncertainty increases
80.

In motion and time study which of the following is used in man analysis?

A. Man and machine analysis chart
B. Man and maching operation time chart
C. Man and machine, process time chart
D. Multiman operation time chart
E. All of the above
Answer» E. All of the above
81.

Under Gantt incentive plan the wages are calculated on

A. piece basis
B. group average basis
C. hourly basis
D. None of the above
E. None of the above
Answer» C. hourly basis
82.

A dual event

A. is always the first event
B. is always the last event
C. either of (A) and (B) above
D. is any event other than (A) and (B) above
E. None of the above
Answer» D. is any event other than (A) and (B) above
83.

In the short run, in cannot produce at an economic profit

A. When he cannot produce at an economic profit
B. When price falls short of average variable cost at every level of output
C. When price falls short of average fixed cost at every level of output
D. When there is no point where marginal revenue are equal.
E. None of the above
Answer» B. When price falls short of average variable cost at every level of output
84.

PERT analysis is based on

A. Optimistic time
B. Pessimistic time
C. Most likely time
D. All of the above
E. None of the above
Answer» D. All of the above
85.

Which of the following is not the effective good material handling?

A. Increased labour cost
B. Reduced cost of production
C. Decrease in non-production
D. Lower handling costs
E. All of the above
Answer» A. Increased labour cost
86.

The quality of a part does not depend upon

A. how cheap the part is
B. how well the part performs its function
C. how reliable the performance of the pan is
D. how far the performance can be maintained
E. None of the above
Answer» A. how cheap the part is
87.

A man sells two houses for Rs. 24000 each. He maks 20% of the cost price on the first, but on the second he has a loss of 30% of the cost price. How much did he gain or loss by this transaction?

A. Rs. 2000 loss
B. Rs. 2500 gain
C. Rs. 1500 gain
D. Rs. 2000 gain
E. Rs. 2500 loss
Answer» A. Rs. 2000 loss
88.

Group incentive is recommended for

A. assembly lines
B. research and development
C. office work
D. None of the above
E. None of the above
Answer» A. assembly lines
89.

Which of the following least affects break even point?

A. change in selling price
B. change in volume of production
C. change in fixed cost
D. change in product mix
E. None of the above
Answer» B. change in volume of production
90.

The systematic evaluation of worker's job performance and potential for development is called

A. Production
B. Human resource auditing
C. Appraisal
D. None of the above
E. Demonstration and example
Answer» C. Appraisal
91.

Which of the following is indirect cost?

A. Cost of raw material
B. cost of machining
C. Power consumption in fabrication
D. Training for job
E. None of the above
Answer» D. Training for job
92.

Which of the following is generally not the duty of the material handling department?

A. Survey of handling efficiency
B. Recommending new installations
C. Follow-up on the effectiveness of new installations
D. Recommending new products
E. Designing new equipment
Answer» D. Recommending new products
93.

Sinking fund

A. To build up a reserve for future improvements
B. To reduce the capitalization rate of a property
C. To compensate for a reduction in income
D. To compensate for a property's depreciation
E. To offset the damage caused by casualties
Answer» D. To compensate for a property's depreciation
94.

A fundamental problem in any training method is to determine, whether the method is

A. Valid
B. Expensive
C. Comprehensive
D. Profitable
E. Easy
Answer» A. Valid
95.

Good leadership in a company is important

A. In the chairman and the planning board
B. Primarily in the chairman
C. When crises arise
D. In all superior subordinate relationships
E. None of the above
Answer» D. In all superior subordinate relationships
96.

Which of the following tools can be turned at maximum speed?

A. Diamonds
B. Carbon steel
C. Sintered carbide tools
D. High speed steel
E. Carbide tools
Answer» A. Diamonds
97.

In case of break even analysis, a change in product mix is likely to influence

A. profits
B. break even point
C. contribution
D. All of the above
E. None of the above
Answer» D. All of the above
98.

Depreciation charges for a machine are thirty paise per working hour. The machine has a scrap value of Rs. 2000 and a working hour average life of 24000 hours. The purchase price of the machine would be

A. Rs. 14275
B. Rs. 1800
C. Rs. 9200
D. Rs. 7200
E. Rs. 17750
Answer» C. Rs. 9200
99.

Which of the following numbers has three significant figures

A. 0.0024
B. 0.00243
C. 0.0243
D. 2.4301
E. None of the above
Answer» B. 0.00243
100.

When the future is predicted by extra polation

A. the predictions are based mainly on the behaviour of the stock market
B. the principal factor considered is the current rate of employment
C. Current trends are projected into the future
D. The only factors considered are the trends in population
E. All of the above
Answer» C. Current trends are projected into the future
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