Inventory Management MCQs

In the ABC method materials are classified A, B or C according to their expense – group A being the expensive, group B the medium-cost and group C the inexpensive materials

April 27, 2022

35 Views

In the ABC method materials are classified A, B or C according to their

Q. In the ABC method materials are classified A, B or C according to their expense – group A being the expensive, group B the medium-cost and group C the inexpensive materials.

A. Incorrect

B. Correct

Answer: Correct

In the ABC method materials are classified A, B or C according to their expense – group A being the expensive, group B the medium-cost and group C the inexpensive materials

Previous

Inventory control levels can be calculated in order to maintain inventories at the optimum level. The three critical control levels are:

In the ABC method materials are classified A, B or C according to their expense – group A being the expensive, group B the medium-cost and group C the inexpensive materials

Next

The two-bin system of stores control (or visual method of control) is one whereby each stores item is kept in two storage bins

Related Articles

A publishing house purchases 2,000 units of a particular item per year at a unit cost of ₹ 20

A publishing house purchases 2,000 units of a particular item per year at a unit cost of ₹ 20. The ordering cost per order is ₹ 50 and the inventory carrying cost is 25%. How will be the total cost if company decides to buy in EOQ?

A manufacturer requires 9,600 units of a certain component annually

A manufacturer requires 9,600 units of a certain component annually. This is currently purchased from a regular supplier at ₹ 50 per unit. The cost of placing an order is ₹ 60 per order and the annual carrying cost is ₹ 5 per price. Annual ordering plus carrying cost = ?

The annual demand of a certain component bought from the market is 1,000 units

The annual demand of a certain component bought from the market is 1,000 units. The cost of placing an order is ₹ 60 and the carrying cost per unit is ₹ 3 p.a. The Economic Order Quantity for the item is ?

Cost of abnormal wastage is

Cost of abnormal wastage is

We will be happy to hear your thoughts

Leave a reply Cancel reply

You must be logged in to post a comment.