Material Management Questions

Objective Question 1. Which of the following is a creative approach to eliminate the unnecessary costs which
add neither to quality not to the appearance of the product.
1. Absolute Advantage
2. Value Analysis
3. Accessorial Charges
4. Administered Price
Objective Question 2. Material Management forces co-ordination between which of the following two?
1. Benefit and Accumulation
2. Purchasing and Production Control
3. Surplus and Salvage
4. None of these
Objective Question 3. Which of the following are important aspects of operations management?
1. Creating products for the organization
2. Developing products for the organization
3. Distributing products for the organization
4. All of these
Objective Question 4. Which of the following measures, how long it takes to complete a process from
beginning to end?
1. Scrutinizing
2. Lead Time
3. Purchasing
4. Right quantity
Objective Question 5. Which of the following is NOT an objective of purchasing?
1. To locate new materials or products as required
2. To secure good vendor performance
3. To develop good procedures
4. To not pay reasonably low prices for the best values obtainable
Objective Question 6. Which of the following are the steps involved in materials management?
1. Replenishment of stock
2. Creating inventory levels
3. Conveying Procurement requirements
4. All of these
Objective Question 7. Which of the following is NOT an objective of Material Management?
1. To note changes in market conditions
2. Maximization of material costs.
3. To procure materials of desired quality when required
4. The purchase, receive, transport, store materials efficiently.
Objective Question 8. Which of the following is the process of tracking stock levels and the movement of
goods?
1. Acceptable Sampling Plan
2. Activity Based Costing
3. Inventory Management
4. Application Service Provider
Objective Question 9. Which of the following refers to a list of raw materials, components and instructions
required to construct, manufacture, or repair a product or service?
1. Bill of Sale
2. Bill of Materials
3. Receipts
4. None of these
 Objective Question 10. Which of the following is a system for calculating the materials and components
needed to manufacture a product?
1. Supply Chain
2. Point of Sale
3. Materials Requirement Planning (MRP)
4. Shipping
Objective Question 11. _________ demand means that demand varies significantly from week to week.
A1: Lumpy-(Correct Alternative)
A2 : Lot size
A3 : Constant
A4 : Fix
Objective Question 12. Delay in procurement of materials will result in _____.
A1 : stock outs-Correct Alternative
A2 : overstocking
A3 : delay in audit
A4 : delay in salary
Objective Question 13. ____________ involves communications standard that supports inter-organizational
exchange of common business documents and information electronically. ____________
A1 : Electronic Data Interchange-(Correct Alternative)
A2 : Emergency Data Interchange
A3 : Electronic Data Interlock
A4 : Emergency Data Increase
Objective Question 14. In inventory management, holding cost is also known as ________.
A1 : set up cost
A2 : carrying cost-(Correct Alternative)
A3 : procurement cost
A4 : shrinkage cost
Objective Question 15. Annual Holding cost can be calculated by ________.
A1 : (Average inventory level) x (Holding cost per unit per year)-(Correct Alternative)
A2 : (Number of orders placed per year) x (Setup or order cost per order)
A3 : (Number of orders placed per year) x (Holding cost per unit per year)
A4 : (Average inventory level) X (Setup or order cost per order)
Objective Question 16. The inventory level (point) at which action is taken to replenish the stocked item is
called _______.
A1 : reorder point-(Correct Alternative)
A2 : safety stock
A3 : lead time
A4 : procurement cost
Objective Question 17. The difference between the basic EOQ model and the production order quantity model
is that ______.
A1 : the production order quantity model does not require the assumption of known, constant demand.
A2 : the EOQ model does not require the assumption of negligible lead time. EOQ
A3 : the production order quantity model does not require the assumption of instantaneous delivery.-(Correct
Alternative)
A4 : the EOQ model does not require the assumption of constant demand.
Objective Question 18. In Basic Economic Order Quantity (EOQ) model, the demand is _____ and _______.
A1 : known and constant-(Correct Alternative)
A2 : unknown and constant
A3 : unknown and varying
A4 : known and varying
Objective Question 19. _______ is a financial diagnostic tool to calculate the company’s return on investment
based on sales margin and capital turnover ratio.
A1 : DuPont Analysis-(Correct Alternative)
A2 : Critical Analysis
A3 : Regression
A4 : Correlation
Objective Question 20. Inventory that is created when an order for an item is issued but not yet received is
known as _______.
A1 : safety stock inventory
A2 : anticipation inventory
A3 : pipeline inventory-(Correct Alternative)
A4 : finished product inventory
Objective Question 21. A list of the materials and their quantities required to produce one unit of a product is
called ________.
A1 : Basic Offshore Materials
A2 : Basic Ordering Material
A3 : Band Of Materials
A4 : Bill Of Material-(Correct Alternative)
Objective Question 22. _______ is a computerized file with complete records of each inventory material.
A1 : Inventory status file-(Correct Alternative)
A2 : Inventory stack file
A3 : Inventory measuring file
A4 : Inventory entry exit file
Objective Question 23. ________ management is an integrated functioning of purchasing and allied activities
to achieve maximum co-ordination and optimum expenditure in the area of materials
A1 : Material-(Correct Alternative)
A2 : Supply chain
A3 : Purchase
A4 : Production
Objective Question 24. The purchase order contains details of the product with terms and conditions and is
a/an ____________ document.
A1 : legal-(Correct Alternative)
A2 : illegal
A3 : unknown
A4 : non-binding
Objective Question 25. ________ is the cost to prepare a machine or process for manufacturing an order.
________
A1 : Set up cost-(Correct Alternative)
A2 : Carrying cost
A3 : Procurement cost
A4 : Shrinkage cost
Objective Question 26. _________ inventory tracks both receipts and subtractions of materials continuously.
A1 : Receipts
A2 : Perpetual-(Correct Alternative)
A3 : Rolling
A4 : safety
Objective Question 27. A/ An ________ system is where standard products are manufactured and stocked, and
customers are serviced from an end-product inventory.
A1 : Make to Order
A2 : Made to Stock-(Correct Alternative)
A3 : Engineer to Order
A4 : Engineer to Stock
Objective Question 28. Bills of material organized by major subassemblies or by-product options are known as
_______.
A1 : modular bills-(Correct Alternative)
A2 : pseudo bills
A3 : phantom bills
A4 : low level coding
Objective Question 29. In material requirements planning systems, tracing upward the bill of material from the
components to the parent item is known as _______.
A1 : subtracting
A2 : gaining
A3 : low level coding
A4 : pegging-(Correct Alternative)
Objective Question 30. In recent years, firms have begun to utilize an electronic competitive bidding tool
called _____.
A1 : e-auction-(Correct Alternative)
A2 : simple auction
A3 : financial auction
A4 : offline auction
Objective Question 31. If Corporate headquarters have the authority for the organization’s purchase
expenditures, then a firm maintains a/an _________.
A1 : centralized structure of procurement-(Correct Alternative)
A2 : de-centralized structure of procurement
A3 : associative structure of procurement
A4 : dissociative structure of procurement
Objective Question 32. In purchasing systems, the time between placing and receiving an order is known as
_______.
A1 : ordering time
A2 : set up time
A3 : lead time-(Correct Alternative)
A4 : procurement cost
Objective Question 33. An ordering system with the same ordering amount each time is called _____.
A1 : multiperiod inventory
A2 : single period Inventory
A3 : fixed-quantity-(Correct Alternative)
A4 : perpetual
Objective Question 34. Inventory costs fall into _________.
A1 : sales expenditures
A2 : work in process
A3 : ordering and holding costs-(Correct Alternative)
A4 : profit after sales
Objective Question 35. ______ relates to what, how and when the buyer will pay for the products and services
the supplier delivers.
A1 : Payment terms-(Correct Alternative)
A2 : Supply terms
A3 : Procurement terms
A4 : Outsourcing
Objective Question 36. For a buying situation where the material required has high product complexity and
low commercial uncertainty, the purchase is done by _________
A1 : Purchasing
A2 : Engineering-(Correct Alternative)
A3 : Finance
A4 : Human resource
Objective Question 37. _______ are hard to source and can only be obtained from one supplier; therefore,
vulnerable about their supplies.
A1 : Semi-finished products
A2 : Bottleneck products-(Correct Alternative)
A3 : Routine products
A4 : Finished products
Objective Question 38. __________ relates to all those individuals and groups who participate in the
purchasing decision-making process, who share some common goals, and the risks arising from the decisions.
A1 : Usage center
A2 : Buying center-(Correct Alternative)
A3 : Warehouse
A4 : Corporate Office
Objective Question 39. One of the ways to reduce risk in the procurement of critical materials is _______.
A2 : having multiple suppliers -(Correct Alternative)
A3 : outsourcing
A4 : advertising
Objective Question 40. ________ relates to the commissioning of work, which was previously done in-house,
to a provider in a low-cost country.
A1 : Multiple sourcing
A2 : Offshoring-(Correct Alternative)
A3 : Single sourcing
A4 : Advertising
Objective Question 41. When the responsibility for the execution of the entire outsourced function lies with the
external provider, including coordinating activities, it is known as _______.
A1 : turnkey outsourcing-(Correct Alternative)
A2 : multiple sourcing
A3 : partial outsourcing
A4 : offshoring
Objective Question 42. Inbound logistics refer to ________.
A1 : raw material coming from the supplier to the facility.-(Correct Alternative)
A2 : raw material going out from the facility to the customer.
A3 : finished products going out from the facility to the customer.
A4 : finished product rejected by the quality assurance team.
Objective Question 43. ______ is custom import form used when the importer cannot make a complete
customs entry owing to insufficient information from the shipper.
A1 : Cross-docking
A2 : Bill of sight-(Correct Alternative)
A3 : Bill of lading
A4 : Bill of shipping
Objective Question 44. Logistics Internal Integration includes the ________.
A1 : Integration of the Supply chain with other departments of the organization.-(Correct Alternative)
A2 : Integration of Supply chain with wholesalers.
A3 : Integration of Supply chain with dealers.
A4 : Integration of Supply chain with retailers.
Objective Question 45. ______ is the process by which two or more parties adopt a high level of purposeful
cooperation to maintain a trading relationship over time to achieve specific goals.
A1 : Collaboration-(Correct Alternative)
A2 : Supplier Selection
A3 : Customer Selection
A4 : Competition
Objective Question 46. Keeping all the inventory of a product at a single location, such as at a firm’s facility or
a warehouse and sending/shipping directly to each of its customers is known as __________.
A1 : centralized placement-(Correct Alternative)
A2 : forward placement
A3 : inventory pooling
A4 : logical pooling
Objective Question 47. The process of determining geographical sites for a firm’s logistical operations is
known as ________.
A1 : facility upgradation
A2 : facility location-(Correct Alternative)
A3 : facility incorporation
A4 : facility enhancement
Objective Question 48. _______ transport moves materials from suppliers to the organization’s receiving area.
A1 : Off-site
A2 : On-site
A3 : Outward
A4 : Inward-(Correct Alternative)
Objective Question 49. If an organization uses third-party transport, the cost of moving a unit of material
between locations is called _______.
A1 : tariff-(Correct Alternative)
A2 : auction
A3 : audit
A4 : tender
Objective Question 50. The carriage of unaccompanied road vehicles and trailers on wheels on rail flat cars is
called ______.
A1 : packaging
A2 : cross-docking
A3 : piggy back-(Correct Alternative)
A4 : warehousing
Objective Question 51. RFID stands for _______.
A1 : Repeat Frequency Identifier Repeat Frequency Identifier
A2 : Rolling Frequency Identifier Rolling Frequency Identifier
A3 : Radio Frequency Identification-(Correct Alternative)
A4 : Reverse Frequency Identification. Reverse Frequency Identification
Objective Question 52. A steel or wooden platform of 800 × 1200 mm and 1000 × 1200 mm designed to
accommodate and facilitate cargo transshipment through cargo movement is known as ______.
A1 : pallet-(Correct Alternative)
A2 : container
A3 : piggy back
A4 : cross-docking
Objective Question 53. The package must have the lowest possible weight because volume and weight limit
the potential amount to transport. This is known as _______ of packaging.
A1 : weight efficiency-(Correct Alternative)
A2 : efficiency
A3 : weightlessness
A4 : weighing mechanism
Objective Question 54. Use opaque packaging when the package is exposed to ________.
A1 : humidity
A2 : high temperature
A3 : light-(Correct Alternative)
A4 : vibration
Objective Question 55. _______ refers to the piercing of a pack, which invariably results in product leakage
and damage.
A1 : Compression
A2 : Shrinkage
A3 : Vibration
A4 : Puncture-(Correct Alternative)
Objective Question 56. ________ is caused by microorganisms (bacteria, moulds, yeasts) which may render a
product unacceptable in appearance, taste, smell and effectiveness or be toxic and cause sickness.
A1 : Compression
A2 : Pilferage
A3 : Abiotic spoilage
A4 : Biotic spoilage-(Correct Alternative)
Objective Question 57. _______ thinking offers a context for sustainability that connects the raw materials to
the end for the re-use of packaging.
A1 : Cradle-to-cradle-(Correct Alternative)
A2 : Reverse Logistics
A3 : Biotic spoilage
A4 : Efficiency
Objective Question 58. The certification of _________ means the packaging is for a product that is ‘home
compostable'. _________
A1 : ISO 17088 : 2012
A2 : BS EN 13432-(Correct Alternative)
A3 : ISO 1043-1 : 2011
A4 : IS/ISO 14001 : 2004
Objective Question 59. Hidden costs on materials may be classified under misleading headings such as:
A1 : Materials handling costs
A2 : Taxes
A3 : Transportation costs
A4 : Overheads-(Correct Alternative)
Objective Question 60. Which purchasing practice involves identifying and selecting multiple qualified
suppliers for a specific item or service?
A1 : Sole sourcing
A2 : Multiple sourcing-(Correct Alternative)
A3 : Just-in-time (JIT) inventory
A4 : Economic order quantity (EOQ)
Objective Question 61. Supply management integration refers to
A1 : Coordinating activities across different departments within the organization-(Correct Alternative)
A2 : Collaborating with suppliers to achieve cost reductions
A3 : The implementation of software systems for managing procurement processes
A4 : Outsourcing the entire supply chain management process
Objective Question 62. How can a company effectively collaborate with suppliers to improve quality
standards?
A1 : Sharing production techniques and trade secrets
A2 : Conducting joint quality improvement projects and initiatives -(Correct Alternative)
A3 : Minimizing communication and interaction with suppliers
A4 : Relying on inspection and testing instead of supplier cooperation
Objective Question 63. What is the purpose of conducting supplier audits in supplier management and
development?
A1 : Assessing supplier financial stability
A2 : Evaluating supplier adherence to ethical practices
A3 : Ensuring compliance with industry regulations and standards-(Correct Alternative)
A4 : Identifying potential suppliers for future collaboration
Objective Question 64. How does a matrix purchasing organization structure differ from other traditional
structures?
A1 : It eliminates the need for formal purchasing departments
A2 : It combines both centralized and decentralized decision-making authority-(Correct Alternative)
A3 : It focuses solely on supplier relationship management and development
A4 : It places all purchasing responsibilities on individual business units or departments
Objective Question 65. How can effective internal collaboration improve the efficiency of the purchasing
process?
A1 : By increasing the number of suppliers in the vendor database
A2 : By minimizing communication and interaction with end-users
A3 : By reducing the need for supplier evaluation and selection
A4 : By streamlining information flow and decision-making among departments-(Correct Alternative)
Objective Question 66. What is the primary goal of implementing a dual sourcing strategy?
A1 : Maximizing purchasing volume
A2 : Minimizing supplier relationships
A3 : Reducing supply chain complexity and risks -(Correct Alternative)
A4 : Expanding supplier network
Objective Question 67. What is the purpose of conducting supplier audits to assess Corporate Social
Responsibility (CSR) practices?
A1 : Assessing supplier financial stability
A2 : Evaluating supplier adherence to ethical practices-(Correct Alternative)
A3 : Ensuring compliance with industry regulations and standards
A4 : Identifying potential suppliers for future collaboration
Objective Question 68. How can purchasing professionals contribute to social and environmental sustainability
through their supplier selection decisions?
savings over long-term sustainability goals
A2 : By collaborating with suppliers to develop sustainable product alternatives-(Correct Alternative)
A3 : By minimizing communication and collaboration with suppliers
A4 : By reducing the number of suppliers to streamline the procurement process
Objective Question 69. What is the purpose of setting clear negotiation objectives and limits?
A1 : Reducing the need for supplier evaluation and selection
A2 : Minimizing communication and collaboration with suppliers
A3 : Providing a framework for productive and focused negotiations-(Correct Alternative)
A4 : Avoiding direct negotiation and relying solely on RFPs
Objective Question 70. How can the use of negotiation leverage enhance the purchasing organization's
position?
A1 : By compromising on quality and accepting subpar products or services
A2 : By exerting pressure on suppliers to accept unfavorable terms -(Correct Alternative)
A3 : By minimizing supplier diversity and focusing on a single source
A4 : By avoiding negotiation altogether and relying on fixed pricing
Objective Question 71. What is the purpose of including a termination clause in a contract?
A1 : Providing legal protection in case of contract disputes-(Correct Alternative)
A2 : Minimizing the need for ongoing contract monitoring
A3 : Ensuring long-term commitment and relationship with suppliers
A4 : Expanding the supplier network for future collaborations
Objective Question 72. Which of the following is an example of an unethical purchasing practice?
A1 : Favoring suppliers based on objective evaluation criteria
A2 : Ensuring transparency and accountability in purchasing decisions
A3 : Accepting bribes or kickbacks from suppliers-(Correct Alternative)
A4 : Collaborating with suppliers to improve product quality
Objective Question 73. What is the significance of using linguistic variables in a fuzzy linear programming
model?
A1 : To minimize supplier relationships
A2 : To maximize purchasing volume
A3 : To handle qualitative and subjective judgments-(Correct Alternative)
A4 : To expand the supplier network
Objective Question 74. Which ISO standard focuses on environmental management systems?
A1 : ISO 9001
A2 : ISO 14001-(Correct Alternative)
A3 : ISO 27001
A4 : ISO 45001
Objective Question 75. What does ISO 9001 certification indicate for a supplier?
A1 : Compliance with environmental regulations
A2 : Compliance with social responsibility standards
A3 : Compliance with quality management systems-(Correct Alternative)
A4 : Compliance with labor laws and regulations
Objective Question 76. Which of the following is a key aspect of a comprehensive material audit?
A1 : Minimizing communication and collaboration with suppliers
A2 : Ignoring potential material losses or discrepancies
A3 : Conducting periodic physical inventory counts and reconciliations -(Correct Alternative)
A4 : Assigning equal weights to all evaluation criteria
Objective Question 77. What is the purpose of implementing a FIFO (First-In, First-Out) system in material
storage?
A1 : Prioritizing cost savings over material quality
A2 : Minimizing communication and collaboration with suppliers
A3 : Maximizing storage capacity and density
A4 : Ensuring proper rotation of materials to maintain their freshness or usability-(Correct Alternative)
Objective Question 78. Which of the following inventory control systems uses real-time data to trigger
replenishment orders?
A1 : Periodic review system
A2 : Economic Order Quantity (EOQ) model
A3 : Just-in-Time (JIT) system -(Correct Alternative)
A4 : Fixed-Order Quantity system
Objective Question 79. How does implementing proper labeling and identification systems contribute to
inventory control?
A1 : It enhances warehouse layout efficiency
A2 : It reduces the risk of stockouts
A3 : It facilitates accurate order picking and packing-(Correct Alternative)
A4 : It minimizes holding costs
Objective Question 80. Which of the following is a key characteristic of the Material Requirements Planning
(MRP) system?
A1 : It focuses on managing inventory levels through demand forecasting
A2 : It is suitable for organizations with high demand uncertainty
A3 : It considers both dependent and independent demand-(Correct Alternative)
A4 : It uses historical data to calculate reorder points
Objective Question 81. Which of the following is a key element of a comprehensive inventory security
policy?
A1 : Conducting regular inventory counts and reconciliations-(Correct Alternative)
A2 : Implementing inventory valuation methods
A3 : Monitoring supplier performance and delivery reliability
A4 : Ensuring compliance with environmental regulations
Objective Question 82. The net requirements in material requirements planning (MRP) represent:
A1 : the total demand for a product over a specific time period
A2 : the difference between scheduled receipts and gross requirements-(Correct Alternative)
A3 : the amount of safety stock needed to accommodate demand variability
A4 : the planned order releases to suppliers
Objective Question 83. In Just-in-Time (JIT) inventory management, the concept of "pull" refers to:
A1 : Pushing products to customers based on forecasts
A2 : Producing goods based on actual customer demand-(Correct Alternative)
A3 : Utilizing automated systems for order processing
A4 : Coordinating production activities with suppliers
Objective Question 84. In multi-item inventory management, the term "stock-keeping unit" (SKU) refers to:
A1 : the minimum quantity that can be ordered for each item
A2 : the total number of items in the inventory system
A3 : the unique identifier assigned to each item in the inventory-(Correct Alternative)
A4 : the average lead time for replenishing each item
Objective Question 85. The "last mile" in logistics management refers to:
A1 : The final stage of transportation before goods reach the customer-(Correct Alternative)
A2 : The distance travelled by goods from the warehouse to the retailer
A3 : The process of loading goods onto delivery vehicles
A4 : The delivery of goods from the supplier to the warehouse
Objective Question 86. How does the concept of "cross-docking" contribute to supply chain efficiency? "
A1 : By reducing storage and inventory holding costs-(Correct Alternative)
A2 : By improving transportation safety and security
A3 : By optimizing packaging and labeling processes
A4 : By enhancing order fulfillment accuracy
Objective Question 87. The term "freight forwarding" in transportation logistics refers to:
A1 : The process of shipping goods internationally
A2 : The movement of goods within a warehouse or distribution center
A3 : The coordination and management of the transportation of goods-(Correct Alternative)
A4 : The use of technology to track and monitor shipments
Objective Question 88. Which of the following is a key activity in logistics network design?
A1 : Order fulfillment and tracking
A2 : Warehouse operations and management
A3 : Route planning and optimization-(Correct Alternative)
A4 : Market research and analysis
Objective Question 89. How does effective demand forecasting impact logistics operations?
A1 : It helps in managing transportation costs
A2 : It enables accurate inventory planning and control-(Correct Alternative)
A3 : It minimizes order processing time
A4 : It improves customer service levels
Objective Question 90. What is the purpose of logistics performance measurement?
A1 : Evaluating supplier performance
A2 : Analyzing market competition
A3 : Optimizing resource allocation
A4 : Assessing logistics service quality-(Correct Alternative)
Objective Question 91. How does data analytics contribute to controlling logistics costs?
A1 : By identifying cost-saving opportunities through data-driven insights-(Correct Alternative)
A2 : By expanding the supplier network to negotiate lower prices क
A3 : By increasing the number of distribution centers for better coverage
A4 : By analyzing customer behavior and preferences
Objective Question 92. What is the significance of supplier relationship management in logistics cost control?
A1 : It helps negotiate better pricing and terms with suppliers-(Correct Alternative)
A2 : It minimizes transportation costs by selecting optimal carriers
A3 : It streamlines order processing and fulfillment
A4 : It improves warehouse layout and space utilization
Objective Question 93. What is the role of logistics service level agreements (SLAs) in outsourcing
management?
A1 : Setting performance expectations and metrics-(Correct Alternative)
A2 : Defining payment terms and pricing structures
A3 : Establishing legal and contractual obligations
A4 : Identifying potential risks and mitigation strategies
Objective Question 94. What is the role of environmental regulations in shaping logistics practices?
A1 : Promoting compliance and sustainability-(Correct Alternative)
A2 : Reducing transportation costs and lead times
A3 : Optimizing storage capacity and layout
A4 : Enhancing product quality and reliability
Objective Question 95. Which of the following is a key consideration in selecting packaging materials for
logistics?
A1 : Maximizing product shelf life
A2 : Minimizing transportation costs-(Correct Alternative)
A3 : Reducing order processing time
A4 : Enhancing product visual appeal
Objective Question 96. What is the role of packaging optimization in logistics planning?
A1 : Minimizing storage requirements
A2 : Reducing order fulfillment time
A3 : Maximizing transportation efficiency-(Correct Alternative)
A4 : Enhancing customer satisfaction
Objective Question 97. Which aspect is critical for safe handling of unit loads?
A1 : Reducing packaging weight
A2 : Using environmentally friendly materials
A3 : Providing clear labeling and marking-(Correct Alternative)
A4 : Maximizing load capacity
Objective Question 98. What is the significance of ergonomics in order picking and packing?
A1 : Reducing packaging weight
A2 : Minimizing order processing time
A3 : Enhancing worker safety and efficiency-(Correct Alternative)
A4 : Optimizing packaging design
Objective Question 99. How does proper package labeling contribute to efficient order picking and packing?
A1 : Reducing packaging waste
A2 : Ensuring accurate order fulfillment-(Correct Alternative)
A3 : Maximizing product shelf life
A4 : Enhancing product aesthetics
Objective Question 100. What is the term used to describe the process of collecting materials into standard
packages for efficient handling?
A1 : Unitization-(Correct Alternative)
A2 : Palletization
A3 : Standardization
A4 : Packaging consolidation
Objective Question 101. Which type of packaging is designed for the customer and includes marketing and
promotional materials?
A2 : Consumer packaging-(Correct Alternative)
A3 : Protective packaging
A4 : Specialized packaging
Objective Question 102. Why are reuse and recycling becoming more important in the field of packaging?
A1 : To reduce packaging costs
A2 : To comply with legislation-(Correct Alternative)
A3 : To improve product marketing
A4 : To promote the use of innovative packaging materials.
Objective Question 103. What factors determine the size and location of warehouses?
A1 : Immediate decisions
A2 : Strategic decisions-(Correct Alternative)
A3 : Packaging decisions
A4 : Handling equipment decisions
Objective Question 104. What has reduced the stresses on packaging during long-distance journeys or
transportation by road or rail?
A1 : Modern handling equipment
A2 : Containerization and air suspension-(Correct Alternative)
A3 : Improved primary packaging materials
A4 : The use of tertiary packaging
Objective Question 105. How can packaging manufacturers contribute to sustainability in the supply chain?
A1 : By providing advice on sustainability practices-(Correct Alternative)
A2 : By identifying suitable suppliers for raw materials
A3 : By optimizing the performance of packaging machinery
A4 : By reducing spoilage and damage in storage and distribution
Objective Question 106. How can the "supply chain walk" concept be applied to stakeholder identification?
A1 : Conducting physical visits to each part of the supply chain
A2 : Engaging stakeholders in detailed discussions about their functions and limitations
A3 : Using the concept as a mental framework for identifying stakeholders -(Correct Alternative)
A4 : Collaborating with stakeholders to address issues of shrinkage and product loss
Objective Question 107. Why is understanding the functions and limitations of packaging machinery
essential?
A1 : It helps optimize packaging specifications for sustainability
A2 : It reduces resource usage and improves the economic parameters of the supply chain
A3 : It minimizes spoilage and damage during the filling and packaging processes-(Correct Alternative)
A4 : It facilitates collaboration with stakeholders to establish sustainable practices
Objective Question 108. A flexible machine with the ability to hold, move, or grab materials is called
_______.
A1 : Automated Guided Vehicles
A2 : Hoists
A3 : Robot-(Correct Alternative)
A4 : Cranes
Objective Question 109. Layout in which material moved in one direction along the assembly line and always
in the same pattern is called:
A1 : Product layout-(Correct Alternative)
A2 : Process layout
A3 : Project layout
A4 : Cellular layout
Objective Question 110. Products available for shipment to the customer are called:
A1 : Raw materials inventory
A2 : Buffer inventory
A3 : Parts and components
A4 : Finished goods inventory-(Correct Alternative)
Objective Question 111. Accumulated customer orders to be completed at a later date are called:
A1 : Backorder
A2 : Stock-out
A3 : Backlog-(Correct Alternative)
A4 : Shortage
Objective Question 112. Strategy in which final product is produced at a constant rate and using inventory as
needed to meet demand:
A1 : Level strategy-(Correct Alternative)
A2 : Chase strategy
A3 : Pure strategy
A4 : Peak strategy
Objective Question 113. In queuing system designs, a service system with one waiting line but with several
servers is called:
A1 : Single-server queuing system
A2 : Multiple-server queuing system-(Correct Alternative)
A3 : Multiphase system
A4 : Single-phase system
Objective Question 114. A practical and useful relationship in queuing for any system in a steady state is
called:
A1 : Hanke's Law
A2 : Lawrence's Law
A3 : Johnson's Law
A4 : Little’s Law-(Correct Alternative)
Objective Question 115. To design a short-term plan how jobs to be arrived at each work-station is called:
A1 : Job shop control
A2 : Work station control
A3 : Shop floor control-(Correct Alternative)
A4 : Work force control
Objective Question 116. A list of quantities of components, ingredients, and materials required to make a
finished product is called:
A1 : Bill of Materials-(Correct Alternative)
A2 : Master Production Schedule
A3 : List of Materials
A4 : Master components list
Objective Question 117. _______ reports contain the supply orders planned to be released in the future.
A1 : Scheduled order
A2 : Order Release
A3 : Planned Orders -(Correct Alternative)
A4 : Order Rescheduling
Objective Question 118. A lot-sizing technique that generates exactly what is required to meet the plan is
called:
A1 : Economic lot-sizing
A2 : Lot-for-lot sizing-(Correct Alternative)
A3 : Periodic lot-sizing
A4 : Dynamic lot-sizing
Objective Question 119. Extra units in inventory to help reduce stock outs are called:
A1 : Reorder point
A2 : Just-in-time inventory
A3 : Safety stock-(Correct Alternative)
A4 : Transit inventory
Objective Question 120. A method that uses a predetermined overhead rate to allocate overhead costs is
known as:
A1 : Plant-wide allocation-(Correct Alternative)
A2 : Shipping allocation
A3 : Department allocation
A4 : Production-wide allocation
Objective Question 121. Items whose annual consumption value is 70% and consists of 20% of total inventory
are termed as _______.
A1 : A items-(Correct Alternative)
A2 : B items
A3 : C items
A4 : D items
Objective Question 122. Distorted demand information created in the supply chain is called:
A1 : Reverse logistics
A2 : Outsourcing
A3 : Cross docking
A4 : Bullwhip effect-(Correct Alternative)
Objective Question 123. Vessels that designed to carry railway vehicles are called
A1 : Train ferry-(Correct Alternative)
A2 : Cargo vessels
A3 : Roll-on/roll-off vessels
A4 : Ore bulk train carriers
Objective Question 124. A document that accompanies goods shipped by an international courier, which
allows for tracking is called:
A1 : Bill of materials
A2 : Bill of lading
A3 : Airway Bill-(Correct Alternative)
A4 : Bill of goods
Objective Question 125. Warehouses located near the port is called:
A1 : Field warehouses
A2 : Buffer storage warehouses
A3 : Bonded warehouses
A4 : Export and import warehouses-(Correct Alternative)
Objective Question 126. __________ governs the logistics flow of product across the various countries.
__________,
A1 : Distribution logistics
A2 : Procurement logistics
A3 : Domestic logistics
A4 : Global logistics-(Correct Alternative)
Objective Question 127. Pipeline transport mode is used for:
A1 : Automobile product
A2 : Pharmaceutical product
A3 : Petroleum refineries-(Correct Alternative)
A4 : Textile product
Objective Question 128. The container used to protect the product from contamination and as well as from
loss of contents during use is called:
A1 : Well-closed container-(Correct Alternative)
A2 : Air tight container
A3 : Light-resistant container
A4 : Multiple dose container
Objective Question 129. The package composed of a base layer having cavities that hold the pharmaceutical
product and a lid is called:
A1 : Strip Package
A2 : Child resistant package
A3 : Blister Package-(Correct Alternative)
A4 : Well closed package
Objective Question 130. The entire process of procurement is designed to achieve such a right balance. The
word ‘right’ is used in what sense?
A1 : Optimal Balance-(Correct Alternative)
A2 : Minimal Balance
A3 : Desired Balance
A4 : Ideal Balance
Objective Question 131. What is the legal significance of a breach of contract?
A1 : No legal consequences for either party
A2 : Potential termination of the contract and legal remedies-(Correct Alternative)
A3 : Automatic renewal of the contract terms
A4 : Exemption from any contractual obligations
Objective Question.132. Which of the following best defines a Promissory Note as per The Negotiable
Instruments Act, 1881?
Ans 1. A written promise by a bank to pay a certain sum of money to a specified person.
2. A written order from one party to another directing the latter to pay a specified sum to a third party.
3. A written acknowledgement of a debt.
4. An unconditional promise in writing made by one person to another to pay a certain sum of money.
Objective Question.133. When discrepancies arise between physical stock and the records maintained in the
bin card or store ledger, which of the following is a potential reason?
Ans 1. The stock’s appreciation in market value
2. Depreciation of the stock value
3. External audit adjustments
4. Pilferage
Objective Question.134. Which of the following is NOT one of the main standard-setting bodies influencing
the establishment of GAAP?
Ans 1. American Investment Council (AIC)
2. Financial Accounting Standards Board (FASB)
3. Securities and Exchange Commission (SEC)
4. International Accounting Standards Board (IASB)
Objective Question.135. A company implementing a cross-functional approach in its supply chain faces
challenges in coordinating between sales and production departments. This is primarily due to:
Ans 1. Both departments having the same goals and objectives.
2. Both departments having similar time horizons.
3. Sales and production using the same metrics for performance.
4. Sales focusing on customer demands while production focuses on cost optimization.
Objective Question.136. Which document, generally included in the tender packet, provides a detailed
explanation about the scope, timeline, and terms of the work to be performed?
Ans 1. Non-Disclosure Agreement
2. Purchase Order
3. Terms of Reference (ToR)
4. Letter of Intent
Objective Question.137. Net 30, Net 60, and Net 90, commonly seen in contracts, primarily refer to:
Ans 1. Payment schedules post-invoice
2. Delivery timeframes in days
3. Duration of the contract in months.
4. Duration of the warranty period
Objective Question.138. Which of the following is NOT an advantage of using Stopwatch Time Study in work
measurement?
Ans 1. It allows for detailed analysis of individual work elements.
2. It generates instant predetermined time standards for all tasks.
3. It requires minimal training to apply in various work settings.
4. It provides an objective method to measure work time.
Objective Question.139. When materials are issued based on a predetermined fixed quantity regardless of the
actual consumption, this method is known as:
Ans 1. Fixed period reorder Method
2. Backflushing
3. Perpetual issue Method
4. Direct issue Method
Objective Question.140. What is the primary document used to authorize the issue of materials from a
storehouse in most organizations?
Ans 1. Goods Receipt Note
2. Invoice
3. Material Requisition Note
4. Purchase Order
Objective Question 141. Which of the following is/are the characteristics of Random Access Stores System?
1. It is a kind of closed stores system in which no material has a fixed location.
2. It has an open paper work system which places less emphasis on accounting control.
3. It is feasible for large scale operations.
Ans 1. 2 & 3 Only
2. 1 & 2 Only
3. 1 & 3 Only
4. 1, 2 & 3
Objective Question 142. Which of the following conclusions is correct based on the statement?
Statement: Public warehouses are storage solutions provided by third parties and are available to different
companies for rent.
Conclusion: Only large corporations have access to public warehouses.
Ans 1. Public warehouses are exclusively owned by single corporations.
2. Companies of various sizes can utilize public warehouses.
3. Public warehouses are free of charge.
4. Third parties cannot rent space in public warehouses.
Objective Question.143. B2B supply management systems primarily leverage which technology to enhance
real-time communication and collaboration between businesses?
Ans 1. Social media platforms
2. Content Management Systems
3. Customer Relationship Management Systems
4. E-commerce platforms
Objective Question.144. In an inflationary environment, which method of pricing material issues is likely to
result in higher costs of goods sold and lower ending inventory?
Ans 1. Specific Pricing
2. LIFO
3. FIFO
4. Weighted Average
Objective Question.145. The principle under GAAP which suggests that a business should report both
negatives and positives with full transparency is known as:
Ans 1. Principle of Permanence of Methods
2. Principle of Regularity
3. Principle of Sincerity
4. Principle of Non-Compensation
Objective Question.146. Under the Limited Liability Partnership Act, 2008, which of the following is a duty of
the Designated Partners?
Ans 1. Ensuring the LLP earns profits annually.
2. Representing the LLP in all its business ventures globally.
3. Contributing capital to the LLP.
4. Ensuring compliance with the procedural aspects of the Act
Objective Question.147. Which accounting principle highlights the need to value inventory at the lower of cost
or net realizable value (LCNRV) in the context of inventory management and accounting standards, and why is
this principle important for businesses?
Ans 1. The Prudence Principle; it encourages the conservative valuation of inventory, preventing
overstatement of assets and profits.
2. The Matching Principle; it ensures accurate matching of inventory costs to revenue, resulting in more
transparent financial statements.
3. The Consistency Principle; it promotes uniformity in inventory valuation methods across different reporting
periods, simplifying financial analysis.
4. The Revenue Recognition Principle; it dictates that inventory costs should only be recognized when revenue
is earned, improving revenue and expense recognition accuracy.
Objective Question.148. Which of the following statements regarding depreciation is true?
Ans 1. Depreciation is a non-cash expense that reduces the book value of an asset.
2. Depreciation is applicable primarily to intangible assets.
3. Depreciation represents cash outflow for a business.
4. All assets, tangible or intangible, depreciate in the same manner.
Objective Question.149. A buyer has just received a large shipment of goods from a supplier. Before accepting
and processing the shipment, they decide to inspect a random sample. What quality control method is the buyer
employing?
Ans 1. Just-in-time Quality check
2. Acceptance sampling
3. Total inspection
4. Continuous monitoring
Objective Question.150. Which mode of transportation is most suitable for transporting high volume and
heavy commodities over long distances?
Ans 1. Rail
2. Road
3. Air
4. Water
Objective Question 151. Which of the following is NOT a characteristic of a voidable contract under The
Indian Contract Act, 1872?
Ans 1. It lacks the element of free consent from the beginning.
2. It becomes voidable due to the coercion, misrepresentation, or fraud by one of the parties.
3. It is enforceable by law at the option of one party.
4. It remains valid unless repudiated by the aggrieved party.
Objective Question.152. Which of the following is NOT a key component in the standard receipt procedure in
storekeeping?
Ans 1. Checking and verifying goods against the Purchase Order
2. Inspecting the materials for any damage or defect
3. Creating a Goods Receipt Note (GRN)
4. Arranging the materials on the store shelves without inspection
Objective Question.153. The doctrine of 'Caveat Emptor' in the Sale of Goods Act, 1930 means:
Ans 1. Let the buyer beware
2. Let the seller beware
3. Buyer has an absolute right to reject
4. Seller has an absolute right to sell.
Objective Question 154. The identification of specific technical specifications and volume requirements for a
product typically takes place in which phase?
Ans 1. Generation of Requirement
2. Post-Award Activities
3. Sourcing Phase
4. Pricing Phase
Objective Question.155. Price skimming as a pricing strategy can have a direct impact on:
Ans 1. Positioning the product as premium quality
2. Price equalization with competitors
3. Setting a competitive baseline price
4. Lowering the manufacturing cost
Objective Question 156. Which of the following goals is regarded as a strategic one in the context of inventory
management that focuses on getting inventory levels as low as possible without sacrificing operational
effectiveness?
Ans 1. Just-in-Time (JIT) inventory management
2. Cost-effective procurement
3. Safety stock optimization
4. Optimal order quantity
Objective Question.157. The ______ concept in accounting means that revenues and expenses should be
recognized in the period they occur, regardless of when the cash is received or paid.
Ans 1. Cash Concept
2. Accrual Concept
3. Economic Entity Concept
4. Periodicity Concept
Objective Question.158. Which of the following tools is most likely to be used in evaluating the efficiency of
an inventory management system in terms of demand forecasting accuracy?
Ans 1. JIT (Just-In-Time)
2. Mean Absolute Percentage Error (MAPE)
3. EOQ (Economic Order Quantity) Model
4. ABC Analysis
Objective Question.159. Modern computer-aided material planning systems often utilize which of the
following algorithms to predict future demand based on historical data?
Ans 1. Genetic Algorithm
2. Dijkstra’s Algorithm
3. Time Series Forecasting
4. Convolutional Neural Networks
Objective Question.160. When using the Weighted Average method of pricing material issues, how often is the
average cost recalculated?
Ans 1. After every sale
2. After every purchase
3. at the end of the accounting period only
4. Only at the beginning of the accounting period
Objective Question.161. When writing a formal business letter, which of the following is NOT a key element
to consider for effective presentation?
Ans 1. Use a professional and readable font, such as Arial or Times New Roman.
2. Use a clear and concise subject line to convey the purpose of the letter.
3. Align text and margins consistently for a polished look.
4. Include colorful graphics and images to make the letter visually appealing.
Objective Question.162. Which of the following is NOT commonly part of the procedure for evaluating the
Material Management Function?
Ans 1. Reviewing and benchmarking against industry best practices.
2. Implementing random checks of materials in storage.
3. Collecting and analyzing relevant data metrics.
4. Conducting stakeholder interviews and feedback sessions.
Objective Question.163. When engaging in a supply chain bidding process, why might a company choose a
sealed bid over an open bid auction?
Ans 1. To extend the bidding process duration.
2. To encourage competitive pricing by preventing participants from knowing others' bids.
3. To reduce the number of potential bidders.
4. To ensure that all participants can see each other's bids.
Objective Question.164. Which of the following kinds of contracts, as described in The Indian Contract Act,
1872, are not expressed but inferred from the conduct or dealings between the parties?
Ans 1. Quasi Contract
2. Implied Contract
3. Contingent Contract
4. Express Contract
Objective Question.166. Which of the following represents a core principle of TQM as it relates to Material
Management?
Ans 1. Continuous improvement in the material procurement and handling processes.
2. Material quality is independent of the end-product quality.
3. Quality is the responsibility of the supplier alone.
4. Quality improvements are one-time initiatives.
Objective Question.167. In which of the following scenarios would it be most appropriate to employ a P-
chart?
Ans 1. Tracking the proportion of defective light bulbs in a sample of 100 bulbs.
2. Monitoring the average length of pencils produced in a manufacturing unit.
3. Monitoring the average weight of bags of chips produced in a factory.
4. Evaluating the variability in the diameter of ball bearings produced in a batch.
Objective Question.168. The warehousing function that is directly responsible for minimizing product damage,
spoilage, or theft is termed as:
Ans 1. Preservation
2. Stock Rotation
3. Consolidation
4. Cross-docking
Objective Question.169. A warehouse that stores goods on which payment of duties is deferred until the goods
are removed is known as:
Ans 1. Bonded Warehouse
2. Consolidated Warehouse
3. Public Warehouse
4. Distribution Center
Objective Question.170. Which of the following distinctions between the main function and the characteristics
of inter-office memos, notices, and agendas is true in the context of business correspondence?
Ans 1. Inter-office memos facilitate information exchange between departments, notices are primarily for legal
documentation, and agendas focus on long-term planning.
2. Inter-office memos are often used for strategic decision-making, notices are typically informal and brief, and
agendas primarily serve external communication purposes.
3. Inter-office memos are formal documents for external communication, notices are used for internal
announcements, and agendas serve as meeting minutes.
4. Inter-office memos are written for communication within an organization, notices are meant to
disseminate important information to employees or stakeholders, and agendas outline the topics and
order of business for upcoming meetings.
Objective Question.170. In material management, a "blanket purchase order" refers to:
Ans 1. An order for purchasing office stationary.
2. A purchase order that covers multiple shipments of materials.
3. A commitment to purchase certain items over a specific period.
4. A large order that requires multiple payments over time.
Objective Question.172. A contract that includes an 'FOB destination' term indicates that:
Ans 1. The title and risk pass to the buyer when the goods are shipped.
2. The buyer pays shipping costs.
3. The goods are sold on credit terms.
4. The seller bears the risk until the goods reach the buyer’s location.
Objective Question.173. Balancing the objectives of low inventory, low costs, and high service availability in a
supply-production-distribution system is primarily a pursuit of what in material management?
Ans 1. Single sourcing
2. Total cost optimization
3. Decentralized purchasing
4. Qualitative forecasting
Objective Question.174. Which of the following best represents a direct cost in a manufacturing firm?
Ans 1. Cost of raw materials
2. Rent of the factory building
3. Salary of the plant manager
4. Salary of the company’s sales team
Objective Question.175. Which document is generally used to request thorough bids from potential contractors
when soliciting tenders for a building project?
Ans 1. Sales letter
2. Purchase order
3. Request for Quotation (RFQ)
4. Invoice
Objective Question.176. What is the primary difference between 'Method Study' and 'Work Measurement' in
work study?
Ans 1. Method Study focuses on time, while Work Measurement focuses on method.
2. Work Measurement focuses on tools, while Method Study focuses on human motions.
3. Method Study and Work Measurement are essentially the same.
4. Method Study seeks to find better ways of doing work, while Work Measurement determines the time
taken for a job.
Objective Question.177. Which of the following is NOT a requisite for a contract of guarantee?
Ans 1. An existing or future debt.
2. A contract to perform the promise or discharge the liability of a third person.
3. The presence of three parties – the principal debtor, the creditor, and the surety.
4. The principal debtor must default in payment.
Objective Question.178. Which of the following is NOT typically a part of a standard quotation document?
Ans 1. Detailed technical specifications
2. Price of the product or service
3. Terms and conditions of the sale
4. Credit history of the supplier
Objective Question.179. Consider a firm that uses the LIFO method for inventory valuation. If the prices of
materials are continually decreasing, what impact will this have on the firm's reported gross profit compared to
using the FIFO method?
Ans 1. Higher gross profit
2. Depends on the quantity of materials sold
3. Lower gross profit
4. No difference in gross profit
Objective Question 180. Under the Sale of Goods Act, 1930, which of the following conditions is implied
unless a different intention appears from the terms of the contract?
Ans 1. Free from encumbrances
2. Condition as to wholesomeness
3. Caveat Emptor
4. Condition as to title
Objective Question.181. .Which of the following is not an example of Purchasing Cost involved in the
Management of Materials?
Ans 1. Cost on staff
2. Cost of inspection
3. Cost incurred on handling cranes and conveyors
4. Cost incurred on tendering
Objective Question.182. How does information sharing in the supply chain primarily benefit inventory
management?
Ans 1. By increasing lead times.
2. By decreasing the reliability of forecasts.
3. By enabling suppliers to reduce prices unilaterally.
4. By allowing suppliers to adjust to demand fluctuations in real-time.
Objective Question.183. In the context of inventory control, which method aims to maintain a continuous
supply of an item so that it's neither out of stock nor overstocked?
Ans 1. ABC Analysis
2. Just-in-Time (JIT)
3. Economic Order Quantity (EOQ)
4. Periodic Review System
Objective Question 184. The Section 5 of The Partnership Act, 1932 defines which of the following?
Ans 1. "Partnership" is the relation between persons who have agreed to share the profits of a business carried
on by all or any of them acting for all.
2. Where no provision is made by contract between the partners for the duration of their partnership, or for the
determination of their partnership, the partnership is "partnership-atwill".
3. A person may become a partner with another person in particular adventures or undertakings.
4. The relation of partnership arises firm contract and not from status.
Objective Question.185. Which of the following is NOT a focus area of 'Method Study'?
Ans 1. Designing more ergonomic tools and equipment
2. Analysing physiological stresses on workers
3. Improving work layout and plant location
4. Simplifying the necessary motions required to complete a task
Objective Question.186. In the storekeeping process, which of the following is NOT a common document
checked when receiving materials?
Ans 1. Supplier’s Delivery Note
2. Goods Receipt Note (GRN)
3. Bill of Landing
4. Purchase Requisition
Objective Question.187. The principle that suggests recording every business transaction at the amount paid to
acquire an asset and not its current market value is known as:
Ans 1. Dual Aspect Concept
2. Consistency Concept
3. Matching Principle
4. Cost Concept
Objective Question.188. What is the primary objective of an integrated supply-production-distribution system
in material management?
Ans 1. To reduce lead times in only one aspect of the supply chain.
2. To optimize the overall flow of materials from suppliers to end customers .
3. To stockpile resources against potential future demand.
4. To focus solely on the cost of production.
Objective Question.189. Given below are terms related to the Purchase Procedure and their corresponding
definitions. Match the terms to their correct definitions.
Terms Definitions
A. Tender Purchase B. An agreement wherein specific items will be supplied at specified intervals at
agreed prices, without an actual order.
C. Blanket Order D. An arrangement wherein goods are procured at agreed prices for a set period,
without the necessity of raising repeated purchase orders.
E. Zero Stock C. An approach where stock levels are kept at a minimum, relying on just-in-
time inventory practices.
D. Rate Contract A. A method of sourcing where bids are invited from potential vendors and
suppliers through a formal process.

Objective Question.190. Which of the following conclusions is correct based on the statement? Statement:
Public warehouses allow businesses to scale their storage needs based on demand fluctuations. Conclusion:
Enterprises need to rent a fixed amount of space regardless of their actual requirements.
Ans 1. Public warehouses cater to dynamic business needs.
2. Demand fluctuations have no impact on warehousing requirements.
3. Enterprises must commit to a constant space in public warehouses.
4. Public warehouses do not allow scalability in storage.
Objective Question 191. Which of the following is a primary advantage of implementing an Integrated
Information System for Material Management?
Ans 1. Reduces inventory carrying costs
2. Decreases procurement speed
3. Restricts access to a single department
4. Enables data duplication across departments
Objective Question.192. What primarily drives the importance of work study in the industrial context?
Ans 1. It emphasizes the role of management in daily operations over workers.
2. It provides a theoretical framework for job design.
3. It seeks to improve productivity by achieving efficient use of human and material resources.
4. It focuses solely on the human aspects of work, ignoring machinery.
Objective Question.193. Which of the following is NOT a primary benefit of effective material logistics?
Ans 1. Decreased dependency on external vendors for raw materials.
2. Improved customer satisfaction due to timely product delivery.
3. Enhanced brand image and reputation.
4. Reduced operational costs due to efficient material handling.
Objective Question.194. The establishment of a strong buyer-seller relationship is vital for:
Ans 1. Enhancing repeat business
2. Charging higher prices indiscriminately
3. Avoiding competition
4. Limiting buyer's choice
Objective Question.195. A person who allows their name to be used by a firm but does not have a real interest
in the partnership or share in its profits and losses is known as:
Ans 1. Partner in profits only
2. Nominal partner
3. Active partner
4. Partner by holding out
Objective Question.196. In logistics planning for materials, the consideration of "lead time" primarily impacts
which of the following?
Ans 1. Selecting the warehousing location
2. Deciding on the order quantity
3. Assessing the risk of material obsolescence
4. Determining transportation modalities
Objective Question.197. The Bullwhip effect, observed in the supply chain, is a factor in logistics planning
related to which aspect?
Ans 1. Warehousing Strategies
2. Transportation Mode Selection
3. Pricing Fluctuations
4. Demand Forecast Variability
Objective Question.198. The costs associated with storage, insurance, and depreciation of inventory are
collectively known as:
Ans 1. Carrying costs
2. Setup costs
3. Production costs
4. Ordering costs
Objective Question.199. If a quality analyst is keen to monitor and control the mean of a process, especially
when the sample size remains constant, which chart would be most appropriate?
Ans 1. X - bar Chart
2. U Chart 3.
R Chart
4. P Chart
Objective Question.200. Which of the following is NOT a distinction between a partner and a designated
partner in an LLP under the Limited Liability Partnership Act, 2008?
Ans 1. Designated partners are responsible for regulatory compliances, while partners are not.
2. Designated partners are identified in the incorporation documents of the LLP.
3. Only designated partners can invest capital in the LLP.
4. Designated partners need to obtain a Designated Partner Identification Number (DPIN), while partners do
not.
Objective Question.201. In the standard purchase procedure, the document that formally communicates a
purchase request to a supplier is termed as:
Ans 1. Purchase Requisition
2. Quotation
3. Purchase Order
4. Purchase Invoice
Objective Question.202. The "zero-oriented" objectives of TPM include all EXCEPT:
Ans 1. Zero Breakdowns
2. Zero Stock-outs
3. Zero Defects
4. Zero Accidents
Objective Question.203. Which of the following claims about the different kinds of inventories is true in the
context of inventories?
Ans 1. Finished goods inventory consists of items that have been produced but not yet sold to customers.
2. Work-in-progress (WIP) inventory includes items that are ready for immediate use in production.
3. MRO (Maintenance, Repair, and Operations) inventory primarily includes items used in administrative tasks.
4. Raw materials inventory represents finished goods ready for sale to customers.
Objective Question.204. What primary purpose does the bin card serve in the storekeeping process?
Ans 1. Keeping a real-time record of stock on hand
2. Invoicing and billing
3. Recording financial transactions related to stock
4. Forecasting future material requirements
Objective Question.205. Which of the following best describes a quasi-contract as per The Indian Contract
Act, 1872?
Ans 1. A contract that is inferred from the conduct or dealings between the parties.
2. A contract made in writing and registered under the law.
3. A contract that is expressly declared as void by the law.
4. A contract in which obligations are imposed by law on one or more parties, even in the absence of
mutual agreement.
Objective Question.206. Which of the following statements best describes the DGS&D Rate Contract?
Ans 1. It is a set of guidelines for financial management in the public sector.
2. It refers to pre-determined rates for items that government departments can purchase without
individual tendering each time.
3. It is a body responsible for financial audits in the public sector.
4. It is an online marketplace for state and central government departments.
Objective Question.207. Which of the following ISO standards is primarily focused on quality management
systems and is among the most widely known worldwide?
Ans 1. ISO 45001
2. ISO 9001
3. ISO 14001
4. ISO 50001
Objective Question.208. Which category of inventory, as it relates to inventory management, indicates goods
whose manufacturing is ongoing but not yet finished?
Ans 1. Safety stock inventory
2. Raw materials inventory
3. Work-in-progress (WIP) inventory
4. Finished goods inventory
Objective Question.209. In the realm of buyer-seller relationships, a supplier's code of conduct typically
addresses which of the following issues?
Ans 1. The preferred communication channels of the buyer
2. Labour practices and human rights
3. The profit margins of the buyer
4. The aesthetic appeal of the supplier's products
Objective Question.210. What is a major advantage of using Predetermined Time Standards over Stopwatch
Time Studies?
Ans 1. They require less expertise in time study techniques.
2. They can be established without actual observation of the task.
3. They are universally applicable to all industries.
4. They allow for real-time measurements.
Objective Question.211. One of the key advantages of material management is to:
Ans 1. Focus primarily on top-tier suppliers, ignoring smaller vendors.
2. Prioritize qualitative measures over quantitative performance metrics.
3. Increase reliance on manual tracking systems.
4. Avoid overstock and stockout situations.
Objective Question.212. As per The Negotiable Instruments Act, 1881, which of the following endorsements
transfers the property in the instrument without further responsibility to the endorser?
Ans 1. Partial endorsement
2. Full endorsement
3. Sans recourse endorsement
4. Conditional endorsement
Objective Question 213. _________ demand means that demand varies significantly from week to week.
A1 : Lumpy-(Correct Alternative)
A2 : Lot size
A3 : Constant
A4 : Fix
Objective Question 214. Delay in procurement of materials will result in _____.
A1 : stock outs-(Correct Alternative)
A2 : overstocking
A3 : delay in audit
A4 : delay in salary
Objective Question 215. ____________ involves communications standard that supports inter-organizational
exchange of common business documents and information electronically.
A1 : Electronic Data Interchange-(Correct Alternative)
A2 : Emergency Data Interchange
A3 : Electronic Data Interlock
A4 : Emergency Data Increase
Objective Question 216. In inventory management, holding cost is also known as ________.
A1 : set up cost
A2 : carrying cost-(Correct Alternative)
A3 : procurement cost
A4 : shrinkage cost
Objective Question 217. Annual Holding cost can be calculated by ________.
A1 : (Average inventory level) x (Holding cost per unit per year)-(Correct Alternative)
A2 : (Number of orders placed per year) x (Setup or order cost per order)
A3 : (Number of orders placed per year) x (Holding cost per unit per year)
A4 : (Average inventory level) X (Setup or order cost per order)
Objective Question 218. The inventory level (point) at which action is taken to replenish the stocked item is
called _______.
A1 : reorder point-(Correct Alternative)
A2 : safety stock
A3 : lead time
A4 : procurement cost
Objective Question 219. The difference between the basic EOQ model and the production order quantity
model is that ______.
A1 : the production order quantity model does not require the assumption of known, constant demand.
A2 : the EOQ model does not require the assumption of negligible lead time.
A3 : the production order quantity model does not require the assumption of instantaneous delivery.-(Correct
Alternative)
A4 : the EOQ model does not require the assumption of constant demand.
Objective Question 220. In Basic Economic Order Quantity (EOQ) model, the demand is _____ and _______.
A1 : known and constant-(Correct Alternative)
A2 : unknown and constant
A3 : unknown and varying
A4 : known and varying
Objective Question 221. _______ is a financial diagnostic tool to calculate the company’s return on
investment based on sales margin and capital turnover ratio.
A1 : DuPont Analysis-(Correct Alternative)
A2 : Critical Analysis
A3 : Regression
A4 : Correlation
Objective Question 222. Inventory that is created when an order for an item is issued but not yet received is
known as _______.
A1 : safety stock inventory
A2 : anticipation inventory
A3 : pipeline inventory-(Correct Alternative)
A4 : finished product inventory
Objective Question 223. A list of the materials and their quantities required to produce one unit of a product is
called ________.
A1 : Basic Offshore Materials
A2 : Basic Ordering Material
A3 : Band Of Materials
A4 : Bill Of Material-(Correct Alternative)
Objective Question 224. _______ is a computerized file with complete records of each inventory material.
A1 : Inventory status file-(Correct Alternative)
A2 : Inventory stack file
A3 : Inventory measuring file
A4 : Inventory entry exit file
Objective Question 225. ________ management is an integrated functioning of purchasing and allied
activities to achieve maximum co-ordination and optimum expenditure in the area of materials.
A1 : Material-(Correct Alternative)
A2 : Supply chain
A3 : Purchase
A4 : Production
Objective Question 226. The purchase order contains details of the product with terms and conditions and is
a/an ____________ document.
A1 : legal-(Correct Alternative)
A2 : illegal
A3 : unknown
A4 : non-binding
Objective Question 227. ________ is the cost to prepare a machine or process for manufacturing an order.
A1 : Set up cost-(Correct Alternative)
A2 : Carrying cost
A3 : Procurement cost
A4 : Shrinkage cost
Objective Question 228. _________ inventory tracks both receipts and subtractions of materials continuously.
A1 : Receipts
A2 : Perpetual-(Correct Alternative)
A3 : Rolling
A4 : safety
Objective Question 229. A/ An ________ system is where standard products are manufactured and stocked,
and customers are serviced from an end-product inventory.
A1 : Make to Order
A2 : Made to Stock-(Correct Alternative)
A3 : Engineer to Order
A4 : Engineer to Stock
Objective Question 230. Bills of material organized by major subassemblies or by-product options are known
as _______.
A1 : modular bills-(Correct Alternative)
A2 : pseudo bills
A3 : phantom bills
A4 : low level coding
Objective Question 231. In material requirements planning systems, tracing upward the bill of material from
the components to the parent item is known as _______.
A1 : subtracting
A2 : gaining
A3 : low level coding
A4 : pegging-(Correct Alternative)
Objective Question 232. In recent years, firms have begun to utilize an electronic competitive bidding tool
called _____.
A1 : e-auction-(Correct Alternative)
A2 : simple auction
A3 : financial auction
A4 : offline auction
Objective Question 233. If Corporate headquarters have the authority for the organization’s purchase
expenditures, then a firm maintains a/an _________.
A1 : centralized structure of procurement-(Correct Alternative)
A2 : de-centralized structure of procurement
A3 : associative structure of procurement
A4 : dissociative structure of procurement
Objective Question 234. In purchasing systems, the time between placing and receiving an order is known as
_______.
A1 : ordering time
A2 : set up time
A3 : lead time-(Correct Alternative)
A4 : procurement cost
Objective Question 235. An ordering system with the same ordering amount each time is called _____.
A1 : multiperiod inventory
A2 : single period Inventory
A3 : fixed-quantity-(Correct Alternative)
A4 : perpetual
Objective Question 236. Inventory costs fall into _________.
A1 : sales expenditures
A2 : work in process
A3 : ordering and holding costs-(Correct Alternative)
A4 : profit after sales
Objective Question 237. ______ relates to what, how and when the buyer will pay for the products and
services the supplier delivers.
A1 : Payment terms-(Correct Alternative)
A2 : Supply terms
A3 : Procurement terms
A4 : Outsourcing
Objective Question 238. For a buying situation where the material required has high product complexity and
low commercial uncertainty, the purchase is done by _________ department.
A1 : Purchasing
A2 : Engineering-(Correct Alternative)
A3 : Finance
A4 : Human resource
Objective Question 239. _______ are hard to source and can only be obtained from one supplier; therefore,
vulnerable about their supplies.
A1 : Semi-finished products
A2 : Bottleneck products-(Correct Alternative)
A3 : Routine products
A4 : Finished products
Objective Question 240. __________ relates to all those individuals and groups who participate in the
purchasing decision-making process, who share some common goals, and the risks arising from the decisions.
A1 : Usage center
A2 : Buying center-(Correct Alternative)
A3 : Warehouse
A4 : Corporate Office
Objective Question 241. . One of the ways to reduce risk in the procurement of critical materials is _______.
A1 : having a single supplier
A2 : having multiple suppliers -(Correct Alternative)
A3 : outsourcing
A4 : advertising
Objective Question 242. ________ relates to the commissioning of work, which was previously done in-
house, to a provider in a low-cost country.
A1 : Multiple sourcing
A2 : Offshoring-(Correct Alternative)
A3 : Single sourcing
A4 : Advertising
Objective Question 243. When the responsibility for the execution of the entire outsourced function lies with
the external provider, including coordinating activities, it is known as _______.
A1 : turnkey outsourcing-(Correct Alternative)
A2 : multiple sourcing
A3 : partial outsourcing
A4 : offshoring
Objective Question 244 . Inbound logistics refer to ________.
A1 : raw material coming from the supplier to the facility.-(Correct Alternative)
A2 : raw material going out from the facility to the customer.
A3 : finished products going out from the facility to the customer.
A4 : finished product rejected by the quality assurance team.
Objective Question 245. ______ is custom import form used when the importer cannot make a complete
customs entry owing to insufficient information from the shipper.
A1 : Cross-docking
A2 : Bill of sight-(Correct Alternative)
A3 : Bill of lading
A4 : Bill of shipping
Objective Question 246. Logistics Internal Integration includes the ________.
A1 : Integration of the Supply chain with other departments of the organization.-(Correct Alternative)
A2 : Integration of Supply chain with wholesalers.
A3 : Integration of Supply chain with dealers.
A4 : Integration of Supply chain with retailers.
Objective Question 247. ______ is the process by which two or more parties adopt a high level of purposeful
cooperation to maintain a trading relationship over time to achieve specific goals. ___________,
A1 : Collaboration-(Correct Alternative)
A2 : Supplier Selection
A3 : Customer Selection
A4 : Competition
Objective Question 248. Keeping all the inventory of a product at a single location, such as at a firm’s facility
or a warehouse and sending/shipping directly to each of its customers is known as __________.
A1 : centralized placement-(Correct Alternative)
A2 : forward placement
A3 : inventory pooling
A4 : logical pooling
 Objective Question 249. The process of determining geographical sites for a firm’s logistical operations is
known as ________.
A1 : facility upgradation
A2 : facility location-(Correct Alternative)
A3 : facility incorporation
A4 : facility enhancement
Objective Question 250. _______ transport moves materials from suppliers to the organization’s receiving
area.
A1 : Off-site
A2 : On-site
A3 : Outward
A4 : Inward-(Correct Alternative)
Objective Question 251. If an organization uses third-party transport, the cost of moving a unit of material
between locations is called _______.
A1 : tariff-(Correct Alternative)
A2 : auction
A3 : audit
A4 : tender
Objective Question 252. The carriage of unaccompanied road vehicles and trailers on wheels on rail flat cars
is called ______.
A1 : packaging
A2 : cross-docking
A3 : piggy back-(Correct Alternative)
A4 : warehousing
Objective Question 253. RFID stands for _______.
A1 : Repeat Frequency Identifier
A2 : Rolling Frequency Identifier
A3 : Radio Frequency Identification-(Correct Alternative)
A4 : Reverse Frequency Identification.
Objective Question 254. A steel or wooden platform of 800 × 1200 mm and 1000 × 1200 mm designed to
accommodate and facilitate cargo transshipment through cargo movement is known as ______.
A1 : pallet-(Correct Alternative)
A2 : container
A3 : piggy back
A4 : cross-docking
Objective Question 255. The package must have the lowest possible weight because volume and weight limit
the potential amount to transport. This is known as _______ of packaging.
A1 : weight efficiency-(Correct Alternative)
A2 : efficiency
A3 : weightlessness
A4 : weighing mechanism
Objective Question 256. Use opaque packaging when the package is exposed to ________.
A1 : humidity
A2 : high temperature
A3 : light-(Correct Alternative)
A4 : vibration
Objective Question 257. _______ refers to the piercing of a pack, which invariably results in product leakage
and damage.
A1 : Compression
A2 : Shrinkage
A3 : Vibration
A4 : Puncture-(Correct Alternative)
Objective Question 258. ________ is caused by microorganisms (bacteria, moulds, yeasts) which may render
a product unacceptable in appearance, taste, smell and effectiveness or be toxic and cause sickness.
A1 : Compression
A2 : Pilferage
A3 : Abiotic spoilage
A4 : Biotic spoilage-(Correct Alternative)
Objective Question 259. _______ thinking offers a context for sustainability that connects the raw materials to
the end for the re-use of packaging.
A1 : Cradle-to-cradle-(Correct Alternative)
A2 : Reverse Logistics
A3 : Biotic spoilage
A4 : Efficiency
Objective Question 260. The certification of _________ means the packaging is for a product that is ‘home
compostable'.
A1 : ISO 17088 : 2012
A2 : BS EN 13432-(Correct Alternative)
A3 : ISO 1043-1 : 2011
A4 : IS/ISO 14001 : 2004
Objective Question 261. Hidden costs on materials may be classified under misleading headings such as:
A1 : Materials handling costs
A2 : Taxes
A3 : Transportation costs
A4 : Overheads-(Correct Alternative)
Objective Question 262. Which purchasing practice involves identifying and selecting multiple qualified
suppliers for a specific item or service?
A1 : Sole sourcing
A2 : Multiple sourcing-(Correct Alternative)
A3 : Just-in-time (JIT) inventory
A4 : Economic order quantity (EOQ)
Objective Question 263. Supply management integration refers to:
A1 : Coordinating activities across different departments within the organization-(Correct Alternative)
A2 : Collaborating with suppliers to achieve cost reductions
A3 : The implementation of software systems for managing procurement processes
A4 : Outsourcing the entire supply chain management process
Objective Question 264. How can a company effectively collaborate with suppliers to improve quality
standards?
A1 : Sharing production techniques and trade secrets
A2 : Conducting joint quality improvement projects and initiatives -(Correct Alternative)
A3 : Minimizing communication and interaction with suppliers
A4 : Relying on inspection and testing instead of supplier cooperation
Objective Question 265. What is the purpose of conducting supplier audits in supplier management and
development?
A1 : Assessing supplier financial stability
A2 : Evaluating supplier adherence to ethical practices
A3 : Ensuring compliance with industry regulations and standards-(Correct Alternative)
A4 : Identifying potential suppliers for future collaboration
Objective Question 266. How does a matrix purchasing organization structure differ from other traditional
structures?
A1 : It eliminates the need for formal purchasing departments
A2 : It combines both centralized and decentralized decision-making authority-(Correct Alternative)
A3 : It focuses solely on supplier relationship management and development
A4 : It places all purchasing responsibilities on individual business units or departments
Objective Question 267. How can effective internal collaboration improve the efficiency of the purchasing
process?
A1 : By increasing the number of suppliers in the vendor database
A2 : By minimizing communication and interaction with end-users
A3 : By reducing the need for supplier evaluation and selection
A4 : By streamlining information flow and decision-making among departments-(Correct Alternative)
Objective Question 268. What is the primary goal of implementing a dual sourcing strategy?
A1 : Maximizing purchasing volume
A2 : Minimizing supplier relationships
A3 : Reducing supply chain complexity and risks -(Correct Alternative)
A4 : Expanding supplier network
Objective Question 269. What is the purpose of conducting supplier audits to assess Corporate Social
Responsibility (CSR) practices?
A1 : Assessing supplier financial stability
A2 : Evaluating supplier adherence to ethical practices-(Correct Alternative)
A3 : Ensuring compliance with industry regulations and standards
A4 : Identifying potential suppliers for future collaboration भि
Objective Question 270. How can purchasing professionals contribute to social and environmental
sustainability through their supplier selection decisions?
A1 : By prioritizing short-term cost savings over long-term sustainability goals
A2 : By collaborating with suppliers to develop sustainable product alternatives-(Correct Alternative)
A3 : By minimizing communication and collaboration with suppliers
A4 : By reducing the number of suppliers to streamline the procurement process
Objective Question 271. What is the purpose of setting clear negotiation objectives and limits?
A1 : Reducing the need for supplier evaluation and selection
A2 : Minimizing communication and collaboration with suppliers
A3 : Providing a framework for productive and focused negotiations-(Correct Alternative)
A4 : Avoiding direct negotiation and relying solely on RFPs
Objective Question 272. How can the use of negotiation leverage enhance the purchasing organization's
position?
A1 : By compromising on quality and accepting subpar products or services
A2 : By exerting pressure on suppliers to accept unfavorable terms -(Correct Alternative)
A3 : By minimizing supplier diversity and focusing on a single source
A4 : By avoiding negotiation altogether and relying on fixed pricing
Objective Question 273. What is the purpose of including a termination clause in a contract?
A1 : Providing legal protection in case of contract disputes-(Correct Alternative)
A2 : Minimizing the need for ongoing contract monitoring
A3 : Ensuring long-term commitment and relationship with suppliers
A4 : Expanding the supplier network for future collaborations
Objective Question 274. Which of the following is an example of an unethical purchasing practice?
A1 : Favoring suppliers based on objective evaluation criteria
A2 : Ensuring transparency and accountability in purchasing decisions
A3 : Accepting bribes or kickbacks from suppliers-(Correct Alternative)
A4 : Collaborating with suppliers to improve product quality
Objective Question 275. What is the legal significance of a breach of contract?
A1 : No legal consequences for either party
A2 : Potential termination of the contract and legal remedies-(Correct Alternative)
A3 : Automatic renewal of the contract terms
A4 : Exemption from any contractual obligations
Objective Question 276. What is the significance of using linguistic variables in a fuzzy linear programming
model?
A1 : To minimize supplier relationships
A2 : To maximize purchasing volume
A3 : To handle qualitative and subjective judgments-(Correct Alternative)
A4 : To expand the supplier network
Objective Question 277. Which ISO standard focuses on environmental management systems?
A1 : ISO 9001
A2 : ISO 14001-(Correct Alternative)
A3 : ISO 27001
A4 : ISO 45001
Objective Question 278. What does ISO 9001 certification indicate for a supplier?
A1 : Compliance with environmental regulations
A2 : Compliance with social responsibility standards
A3 : Compliance with quality management systems-(Correct Alternative)
A4 : Compliance with labor laws and regulations
Objective Question 279. Which of the following is a key aspect of a comprehensive material audit?
A1 : Minimizing communication and collaboration with suppliers
A2 : Ignoring potential material losses or discrepancies
A3 : Conducting periodic physical inventory counts and reconciliations -(Correct Alternative)
A4 : Assigning equal weights to all evaluation criteria
Objective Question 280. What is the purpose of implementing a FIFO (First-In, First-Out) system in material
storage?
A1 : Prioritizing cost savings over material quality
A2 : Minimizing communication and collaboration with suppliers
A3 : Maximizing storage capacity and density
A4 : Ensuring proper rotation of materials to maintain their freshness or usability-(Correct Alternative)
Objective Question 281. Which of the following inventory control systems uses real-time data to trigger
replenishment orders?
A1 : Periodic review system
A2 : Economic Order Quantity (EOQ) model
A3 : Just-in-Time (JIT) system -(Correct Alternative)
A4 : Fixed-Order Quantity system
Objective Question 282. How does implementing proper labeling and identification systems contribute to
inventory control?
A1 : It enhances warehouse layout efficiency
A2 : It reduces the risk of stockouts
A3 : It facilitates accurate order picking and packing-(Correct Alternative)
A4 : It minimizes holding costs
Objective Question 283. Which of the following is a key characteristic of the Material Requirements Planning
(MRP) system?
A1 : It focuses on managing inventory levels through demand forecasting
A2 : It is suitable for organizations with high demand uncertainty
A3 : It considers both dependent and independent demand-(Correct Alternative)
A4 : It uses historical data to calculate reorder points
Objective Question 284. Which of the following is a key element of a comprehensive inventory security
policy?
A1 : Conducting regular inventory counts and reconciliations-(Correct Alternative)
A2 : Implementing inventory valuation methods
A3 : Monitoring supplier performance and delivery reliability
A4 : Ensuring compliance with environmental regulations
Objective Question 285. The net requirements in material requirements planning (MRP) represent:
A1 : the total demand for a product over a specific time period
A2 : the difference between scheduled receipts and gross requirements-(Correct Alternative)
A3 : the amount of safety stock needed to accommodate demand variability
A4 : the planned order releases to suppliers
Objective Question 286. In Just-in-Time (JIT) inventory management, the concept of "pull" refers to:
A1 : Pushing products to customers based on forecasts
A2 : Producing goods based on actual customer demand-(Correct Alternative)
A3 : Utilizing automated systems for order processing
A4 : Coordinating production activities with suppliers
Objective Question 287. In multi-item inventory management, the term "stock-keeping unit" (SKU) refers to:
A1 : the minimum quantity that can be ordered for each item
A2 : the total number of items in the inventory system
A3 : the unique identifier assigned to each item in the inventory-(Correct Alternative)
A4 : the average lead time for replenishing each item
Objective Question 288. The "last mile" in logistics management refers to:
A1 : The final stage of transportation before goods reach the customer-(Correct Alternative)
A2 : The distance travelled by goods from the warehouse to the retailer
A3 : The process of loading goods onto delivery vehicles
A4 : The delivery of goods from the supplier to the warehouse
Objective Question 289. How does the concept of "cross-docking" contribute to supply chain efficiency?
A1 : By reducing storage and inventory holding costs-(Correct Alternative)
A2 : By improving transportation safety and security
A3 : By optimizing packaging and labeling processes
A4 : By enhancing order fulfillment accuracy
Objective Question 290. The term "freight forwarding" in transportation logistics refers to:
A1 : The process of shipping goods internationally
A2 : The movement of goods within a warehouse or distribution center
A3 : The coordination and management of the transportation of goods-(Correct Alternative)
A4 : The use of technology to track and monitor shipments
Objective Question 291. Which of the following is a key activity in logistics network design?
A1 : Order fulfillment and tracking
A2 : Warehouse operations and management
A3 : Route planning and optimization-(Correct Alternative)
A4 : Market research and analysis
Objective Question 292. How does effective demand forecasting impact logistics operations?
A1 : It helps in managing transportation costs
A2 : It enables accurate inventory planning and control-(Correct Alternative)
A3 : It minimizes order processing time
A4 : It improves customer service levels
Objective Question 293. What is the purpose of logistics performance measurement?
A1 : Evaluating supplier performance
A2 : Analyzing market competition
A3 : Optimizing resource allocation
A4 : Assessing logistics service quality-(Correct Alternative)
Objective Question 294. How does data analytics contribute to controlling logistics costs?
A1 : By identifying cost-saving opportunities through data-driven insights-(Correct Alternative)
A2 : By expanding the supplier network to negotiate lower prices
A3 : By increasing the number of distribution centers for better coverage
A4 : By analyzing customer behavior and preferences
Objective Question 295. What is the significance of supplier relationship management in logistics cost
control?
A1 : It helps negotiate better pricing and terms with suppliers-(Correct Alternative)
A2 : It minimizes transportation costs by selecting optimal carriers
A3 : It streamlines order processing and fulfillment
A4 : It improves warehouse layout and space utilization
Objective Question 296. What is the role of logistics service level agreements (SLAs) in outsourcing
management?
A1 : Setting performance expectations and metrics-(Correct Alternative)
A2 : Defining payment terms and pricing structures
A3 : Establishing legal and contractual obligations
A4 : Identifying potential risks and mitigation strategies
Objective Question 297. What is the role of environmental regulations in shaping logistics practices?
A1 : Promoting compliance and sustainability-(Correct Alternative)
A2 : Reducing transportation costs and lead times
A3 : Optimizing storage capacity and layout
A4 : Enhancing product quality and reliability
Objective Question 298. Which of the following is a key consideration in selecting packaging materials for
logistics?
A1 : Maximizing product shelf life
A2 : Minimizing transportation costs-(Correct Alternative)
A3 : Reducing order processing time
A4 : Enhancing product visual appeal
Objective Question 299. What is the role of packaging optimization in logistics planning?
A1 : Minimizing storage requirements
A2 : Reducing order fulfillment time
A3 : Maximizing transportation efficiency-(Correct Alternative)
A4 : Enhancing customer satisfaction
Objective Question 300. Which aspect is critical for safe handling of unit loads?
A1 : Reducing packaging weight
A2 : Using environmentally friendly materials
A3 : Providing clear labeling and marking-(Correct Alternative)
A4 : Maximizing load capacity
Objective Question 301. What is the significance of ergonomics in order picking and packing?
A1 : Reducing packaging weight
A2 : Minimizing order processing time
A3 : Enhancing worker safety and efficiency-(Correct Alternative)
A4 : Optimizing packaging design
Objective Question 302. How does proper package labeling contribute to efficient order picking and packing?
A1 : Reducing packaging waste
A2 : Ensuring accurate order fulfillment-(Correct Alternative)
A3 : Maximizing product shelf life
A4 : Enhancing product aesthetics
Objective Question 303. What is the term used to describe the process of collecting materials into standard
packages for efficient handling?
A1 : Unitization-(Correct Alternative)
A2 : Palletization
A3 : Standardization
A4 : Packaging consolidation
Objective Question 304. Which type of packaging is designed for the customer and includes marketing and
promotional materials?
A1 : Industrial packaging
A2 : Consumer packaging-(Correct Alternative)
A3 : Protective packaging
A4 : Specialized packaging

Objective Question 305. Why are reuse and recycling becoming more important in the field of packaging?
A1 : To reduce packaging costs
A2 : To comply with legislation-(Correct Alternative)
A3 : To improve product marketing
A4 : To promote the use of innovative packaging materials.

Objective Question 306. What factors determine the size and location of warehouses?
A1 : Immediate decisions
A2 : Strategic decisions-(Correct Alternative)
A3 : Packaging decisions
A4 : Handling equipment decisions

Objective Question 307. What has reduced the stresses on packaging during long-distance journeys or
transportation by road or rail?
A1 : Modern handling equipment
A2 : Containerization and air suspension-(Correct Alternative)
A3 : Improved primary packaging materials
A4 : The use of tertiary packaging

Objective Question 308. How can packaging manufacturers contribute to sustainability in the supply chain?
A1 : By providing advice on sustainability practices-(Correct Alternative)
A2 : By identifying suitable suppliers for raw materials
A3 : By optimizing the performance of packaging machinery
A4 : By reducing spoilage and damage in storage and distribution

Objective Question 309. How can the "supply chain walk" concept be applied to stakeholder identification?
A1 : Conducting physical visits to each part of the supply chain
A2 : Engaging stakeholders in detailed discussions about their functions and limitations
A3 : Using the concept as a mental framework for identifying stakeholders -(Correct Alternative)
A4 : Collaborating with stakeholders to address issues of shrinkage and product loss

Objective Question 310. Why is understanding the functions and limitations of packaging machinery
essential?
A1 : It helps optimize packaging specifications for sustainability
A2 : It reduces resource usage and improves the economic parameters of the supply chain
A3 : It minimizes spoilage and damage during the filling and packaging processes-(Correct Alternative)
A4 : It facilitates collaboration with stakeholders to establish sustainable practices
Objective Question 311. A flexible machine with the ability to hold, move, or grab materials is called _______.
A1 : Automated Guided Vehicles
A2 : Hoists
A3 : Robot-(Correct Alternative)
A4 : Cranes

Objective Question 312. Layout in which material moved in one direction along the assembly line and always
in the same pattern is called:
A1 : Product layout-(Correct Alternative)
A2 : Process layout
A3 : Project layout
A4 : Cellular layout

Objective Question 313. Products available for shipment to the customer are called:
A1 : Raw materials inventory
A2 : Buffer inventory
A3 : Parts and components
A4 : Finished goods inventory-(Correct Alternative)

Objective Question 314. Accumulated customer orders to be completed at a later date are called:
A1 : Backorder
A2 : Stock-out
A3 : Backlog-(Correct Alternative)
A4 : Shortage

Objective Question 315. Strategy in which final product is produced at a constant rate and using inventory as
needed to meet demand:
A1 : Level strategy-(Correct Alternative)
A2 : Chase strategy
A3 : Pure strategy
A4 : Peak strategy

Objective Question 316. In queuing system designs, a service system with one waiting line but with several
servers is called:
A1 : Single-server queuing system
A2 : Multiple-server queuing system-(Correct Alternative)
A3 : Multiphase system
A4 : Single-phase system

Objective Question 317. A practical and useful relationship in queuing for any system in a steady state is
called:
A1 : Hanke's Law
A2 : Lawrence's Law
A3 : Johnson's Law
A4 : Little’s Law-(Correct Alternative)
Objective Question 318. To design a short-term plan how jobs to be arrived at each work-station is called:
A1 : Job shop control
A2 : Work station control
A3 : Shop floor control-(Correct Alternative)
A4 : Work force control

Objective Question 319. A list of quantities of components, ingredients, and materials required to make a
finished product is called:
A1 : Bill of Materials-(Correct Alternative)
A2 : Master Production Schedule
A3 : List of Materials
A4 : Master components list

Objective Question 320. _______ reports contain the supply orders planned to be released in the future.
A1 : Scheduled order
A2 : Order Release
A3 : Planned Orders -(Correct Alternative)
A4 : Order Rescheduling

Objective Question 321. A lot-sizing technique that generates exactly what is required to meet the plan is
called:
A1 : Economic lot-sizing
A2 : Lot-for-lot sizing-(Correct Alternative)
A3 : Periodic lot-sizing
A4 : Dynamic lot-sizing

Objective Question 322. Extra units in inventory to help reduce stock outs are called:
A1 : Reorder point
A2 : Just-in-time inventory
A3 : Safety stock-(Correct Alternative)
A4 : Transit inventory

Objective Question 323. A method that uses a predetermined overhead rate to allocate overhead costs is
known as:
A1 : Plant-wide allocation-(Correct Alternative)
A2 : Shipping allocation
A3 : Department allocation
A4 : Production-wide allocation

Objective Question 324. Items whose annual consumption value is 70% and consists of 20% of total inventory
are termed as _______.
A1 : A items-(Correct Alternative)
A2 : B items
A3 : C items
A4 : D items
Objective Question 325. Distorted demand information created in the supply chain is called:
A1 : Reverse logistics
A2 : Outsourcing
A3 : Cross docking
A4 : Bullwhip effect-(Correct Alternative)

Objective Question 326. Vessels that designed to carry railway vehicles are called:
A1 : Train ferry-(Correct Alternative)
A2 : Cargo vessels
A3 : Roll-on/roll-off vessels
A4 : Ore bulk train carriers

Objective Question 327. A document that accompanies goods shipped by an international courier, which
allows for tracking is called:
A1 : Bill of materials
A2 : Bill of lading
A3 : Airway Bill-(Correct Alternative)
A4 : Bill of goods

Objective Question 328. Warehouses located near the port is called:

A1 : Field warehouses
A2 : Buffer storage warehouses
A3 : Bonded warehouses
A4 : Export and import warehouses-(Correct Alternative)

Objective Question 329. __________ governs the logistics flow of product across the various countries.
A1 : Distribution logistics
A2 : Procurement logistics
A3 : Domestic logistics
A4 : Global logistics-(Correct Alternative)

Objective Question 330. Pipeline transport mode is used for:

A1 : Automobile product
A2 : Pharmaceutical product
A3 : Petroleum refineries-(Correct Alternative)
A4 : Textile product

Objective Question 331. The container used to protect the product from contamination and as well as from
loss of contents during use is called:
A1 : Well-closed container-(Correct Alternative)
A2 : Air tight container
A3 : Light-resistant container
A4 : Multiple dose container
Objective Question 332. The package composed of a base layer having cavities that hold the pharmaceutical
product and a lid is called:
A1 : Strip Package
A2 : Child resistant package
A3 : Blister Package-(Correct Alternative)
A4 : Well closed package

Objective Question 333. In inventory management, MRO stands for _____.

A1 : Maintenance, Repair and Operating inventory-(Correct Alternative) Maintenance, Repair and Operating
inventory
A2 : Manpower, Repair and Operating inventory Manpower, Repair and Operating inventory
A3 : Maintenance, Rework and Outsourced inventory Maintenance, Rework and Outsourced inventory
A4 : Manpower, Repair and Outsourced inventory Manpower, Repair and Outsourced inventory

Objective Question 334. Annual setup cost can be calculated by __________.

A1 : (Average inventory level) x (Holding cost per unit per year)
A2 : (Number of orders placed per year) x (Setup or order cost per order)-(Correct Alternative)
A3 : (Number of orders placed per year) x (Holding cost per unit per year)
A4 : (Average inventory level) X (Setup or order cost per order)

Objective Question 335. The determination of how frequently and in what quantity to order inventory is
termed as _______.
A1 : Safety stock
A2 : Lot sizing-(Correct Alternative)
A3 : DuPont Analysis
A4 : Critical analysis

Objective Question 336. Each material, no matter at how many levels it is used in a product or many products,
has one and only one ________. क साम ी, चाह वह िकसी उ
A1 : bill of material
A2 : material record-(Correct Alternative)
A3 : net requirement
A4 : gross requirement

Objective Question 337. _______ indicate(s) how well the system is operating. _______
A1 : Planned Order Schedule
A2 : Exception Reports
A3 : Performance Reports-(Correct Alternative)
A4 : Planning Reports

Objective Question 338. All manufacturing activities from design to assembly and even procurement of the
required materials for a specific customer order is known as _____.
A1 : Make to Order
A2 : Made to Stock
A3 : Engineer to Order -(Correct Alternative)
A4 : Engineer to Stock

Objective Question 339. A timetable that specifies what is to be made and when in terms of finished goods is
termed as __________.
A1 : Master Production Schedule-(Correct Alternative)
A2 : Material Requirement Planning
A3 : Manufacturing Resource Planning
A4 : Bill Of Material

Objective Question 340. Material groupings created in order to assign an artificial parent to a bill of material
are called ______.
A1 : modular bills
A2 : pseudo bills-(Correct Alternative)
A3 : phantom bills
A4 : low level coding

Objective Question 341. EFT stands for _______.

A1 : Elevated Freight Transport Elevated Freight Transport
A2 : Emergency Funds Transfer Emergency Funds Transfer
A3 : Electronic Funds Transfer-(Correct Alternative)
A4 : Emergency Freight Transport

Objective Question 342. For a buying situation where the material required has low product complexity and
high commercial uncertainty, the purchasing is done by _________ department.
A1 : Purchasing
A2 : Engineering
A3 : Finance-(Correct Alternative)
A4 : Human resource

Objective Question 343. ______ have a small value per item and there are many alternative suppliers.
A1 : Semi-finished products
A2 : Bottleneck products
A3 : Routine products-(Correct Alternative)
A4 : Finished products

Objective Question 344. _______ refers to the case in which only a part of an integrated function is outsourced
and the coordination of the function/activities still lies with the buyer.
A1 : Turnkey outsourcing
A2 : Multiple sourcing
A3 : Partial outsourcing-(Correct Alternative)
A4 : Offshoring
Objective Question 345. Locating stock closer to customers at a warehouse, delivery center, wholesaler, or
retailer is known as ______.
A1 : centralized placement
A2 : forward placement-(Correct Alternative)
A3 : inventory pooling
A4 : logical pooling

Objective Question 346. A warehouse or stocking point where goods are stored for subsequent distribution to
manufacturers, wholesalers, retailers, and customers is called ________.
A1 : quality control
A2 : retail center
A3 : distribution center-(Correct Alternative)
A4 : discount center

Objective Question 347. _______ is the effective coordination of supply chain processes through the seamless
flow of information up and down the supply chain. _______________,
A1 : Reverse logistics
A2 : Forward logistics
A3 : Internet of things
A4 : Supply chain integration-(Correct Alternative)

Objective Question 348. The firm has the most control over the logistics process if it owns and operates it,
becoming a _______ carrier.
A1 : semi public
A2 : semi private
A3 : private-(Correct Alternative)
A4 : public

Objective Question 349. Identifying suitable vendors to obtain competitive terms and managing the supply
relationship online constitute _______.
A1 : e-auction
A2 : e-sourcing-(Correct Alternative)
A3 : e-tender
A4 : e-commerce

Objective Question 350. ______ transport is used for heavy and bulky loads over long land journeys.
A1 : Rail & Road-(Correct Alternative)
A2 : Rail & Sea
A3 : Sea & Air
A4 : Air & Road

Objective Question 351. ________ packaging is used to group packs for ease of handling.
A1 : Efficient
A2 : Tertiary
A3 : Secondary -(Correct Alternative)
A4 : Primary

Objective Question 352. Use moisture-resistant materials/coatings when the package is exposed to _________.
A1 : humidity-(Correct Alternative)
A2 : high temperature
A3 : light
A4 : vibration

Objective Question 353. ________ refers to the chemical or physical changes brought about by external factors
such as oxygen, moisture, light, temperature and loss/gain of volatiles.
A1 : Compression
A2 : Pilferage
A3 : Abiotic spoilage-(Correct Alternative)
A4 : Biotic spoilage

Objective Question 354. _________ packaging materials are capable of undergoing physical, chemical,
thermal, or biological decomposition.
A1 : Biodegradable-(Correct Alternative)
A2 : Degradable
A3 : Compostable
A4 : Aluminium

Objective Question 355. The certification of _________ means the packaging has specifications for a
'compostable plastic'.
A1 : ISO 17088 : 2012-(Correct Alternative)
A2 : BS EN 13432
A3 : ISO 1043-1 : 2011
A4 : IS/ISO 14001 : 2004

Objective Question 356. An inventory-control technique that minimizes the total ordering and holding costs is
known as:
A1 : Production Order Quantity Model
A2 : Quantity discount model
A3 : Mixed order quantity Model
A4 : Economic order quantity Model-(Correct Alternative)

Objective Question 357. The type of inventory method that comprises more number of accounting transactions
is known as:
A1Periodic inventory method
A2 : Perpetual inventory system-(Correct Alternative)
A3 : Finished goods inventory method
A4 : Fixed order period inventory system

Objective Question 358. The economic order quantity formula is obtained using:
A1 : Multivariate analysis
A2 : Vector calculus
A3 : Differential calculus-(Correct Alternative)
A4 : Integral calculus

Objective Question 359. The cost of insurance and electricity comes under _______.
A1 : Ordering cost
A2 : Set-up cost
A3 : Holding cost-(Correct Alternative)
A4 : Shortage cost

Objective Question 360. Inventories shipped by truck or rail from a regional warehouse to a retail facility are
called _______.
A1 : Buffer inventory
A2 : WIP inventory
A3 : Finished goods inventory
A4 : Transit inventory -(Correct Alternative)

Objective Question 361. The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs.
10 per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is:
A1 : 440
A2 : 480
A3 : 500
A4 : 400-(Correct Alternative)

Objective Question 362. __________ indicates the level of each particular item of stock at any point of time.
A1 : Bill of Material
A2 : Material Requisition Note
A3 : Bin card-(Correct Alternative)
A4 : Reorder level

Objective Question 363. The transportation model coordinated between railways and roadways is:
A1 : Tranship
A2 : Airtruck
A3 : Piggyback-(Correct Alternative)
A4 : Fishyback

Objective Question 364. An inland intermodal terminal directly connected by road or rail to a seaport is called
_______.
A1 : Dry port-(Correct Alternative)
A2 : Warm water port
A3 : Fishing port
A4 : Cargo port
Objective Question 365. The transportation system that is an outcome of the combination of air and roadways
is
A1 : Tranship
A2 : Airtruck-(Correct Alternative)
A3 : Piggyback
A4 : Fishyback

Objective Question 366. In Just-in-Time (JIT) inventory management, kanban is a system used for:
A1 : Calculating reorder points and order quantities
A2 : Tracking inventory levels and stockouts
A3 : Identifying non-value-added activities in production
A4 : Facilitating smooth flow of materials and minimizing inventory-(Correct Alternative)

Objective Question 367. The primary goal of logistics management is to:

A1 : Minimize transportation costs
A2 : Maximize warehouse utilization
A3 : Optimize the flow of goods and information-(Correct Alternative)
A4 : Reduce order fulfilment time
Objective Question 368. Pharmaceutical packaging information is governed by:
A1 : Pharmacy act
A2 : Drugs and cosmetic act-(Correct Alternative)
A3 : Pharmaceutical act
A4 : Medicine act

Objective Question 369. The formal statement by the manufacturer of the product regarding the product's
performance is classified as:
A1 : Guarantees
A2 : Warranties-(Correct Alternative)
A3 : Labelling
A4 : Packaging

Objective Question 370. Type of packaging that has heat sealing on one end and a cap on the other end is
called _______.
A1 : Monocartons
A2 : Retort Pouches
A3 : Lamitubes-(Correct Alternative)
A4 : Paper-Foil Laminate

Objective Question 371. Packaging materials ideal for wrapping furniture with drawers so that the drawers
don’t open during your move:
A1 : Plastic Stretch Wrap-(Correct Alternative)
A2 : Packing Peanuts
A3 : Shredded Paper
A4 : Retort Pouches
Objective Question 372. Depreciation of equipment comes under:
A1 : Set up cost
A2 : Ordering costs
A3 : Shortage costs
A4 : Carrying costs-(Correct Alternative)

Objective Question 373. Holding costs can range from _____________% of the value of a manufactured item.
A1 : 30 to 70
A2 : 10 to 40-(Correct Alternative)
A3 : 70 to 90
A4 : 50 to 80

Objective Question 374. Inventory which is built throughout the year in the prediction of high seasonal sales is
called:
A1 : Anticipation inventory-(Correct Alternative)
A2 : Fluctuation inventory
A3 : Lot-size inventory
A4 : Buffer inventory

Objective Question 375. The idea is to establish inventory policies that focus resources on the few critical
inventory parts and not the many trivial ones
A1 : VED analysis 1.0 0.25 VED
A2 : ABC analysis-(Correct Alternative) ABC
A3 : FSN analysis FSN
A4 : XYZ analysis XYZ

Objective Question 376. An inventory-control technique that minimizes the total ordering and holding costs:
A1 : Production order quantity model
A2 : Robust order quantity Model
A3 : Economic order quantity model -(Correct Alternative)
A4 : Quantity discount model

Objective Question 377. Inventory level (point) at which action is taken to replenish the stocked item is called
as:
A1 : Re-plenish point
A2 : Re-fill point
A3 : Re-set point
A4 : Re-order point-(Correct Alternative)

Objective Question 378. What type of packaging material is used in consumer packaging?
A1 : Plastic and cellophane-(Correct Alternative)
A2 : Cardboard and dull materials
A3 : Brightly coloured materials
A4 : Elaborate containers
Objective Question 379. Goods having a high replenishment rate and is also very competitive are called
_______.
A1 : Fast moving goods-(Correct Alternative)
A2 : Slow moving goods
A3 : Non moving goods
A4 : Moderate moving goods

Objective Question 380. A condition occurring when there are more people on the payroll than are needed to
produce the planned output:
A1 : Overtime
A2 : Undertime-(Correct Alternative)
A3 : Shifting time
A4 : Regular time

Objective Question 381. Customers enter the waiting line at a cafeteria’s only cash register on a first-come,
first-served basis. The arrival rate follows a Poisson distribution, while service times follow an exponential
distribution. If the average number of arrivals is 6 per minute and the average service rate of a single server is
10 per minute, what is the average number of customers in the system?
A1 : 0.6
A2 : 0.25
A3 : 1.5-(Correct Alternative)
A4 : 0.9

Objective Question 382. An approach for sequencing a group of jobs through two work centers while
minimizing total idle time in the work centers is ________.
A1 : Johnson's rule-(Correct Alternative)
A2 : Celoxio's rule
A3 : Simmons's rule
A4 : Hoffman's rule

Objective Question 383. MRP stands for:

A1 : Material Resource Planning Material Resource Planning
A2 : Material Requirements Planning -(Correct Alternative)
A3 : Material Revenue Planning
A4 : Material Risk Planning

Objective Question 384. The difference between perceived costs and perceived benefits is classified as
_________.
A1 : Buyer's incentive-(Correct Alternative)
A2 : Seller's incentive
A3 : Corporate incentive
A4 : Competitor's incentive

Objective Question 385. The method in which purchase orders are placed after a fixed time interval is
_______.
A1 : Fixed quality review
A2 : Fixed quantity review
A3 : Continuous review
A4 : Periodic review-(Correct Alternative)

Objective Question 386. The method under which vendor rating is based on various costs incurred for
procuring the materials from multiple suppliers is called ____.
A1 : The cost ratio plan-(Correct Alternative)
A2 : The cost benefit plan
A3 : The fixed cost plan
A4 : The variable cost plan

Objective Question 387. Purchasing commodities or services at a specified price for delivery at a future date is
called _______.
A1 : Tender buying
A2 : Contract buying
A3 : Forward buying-(Correct Alternative)
A4 : Scattered buying

Objective Question 388. Companies that sell and buy products to and from other businesses are called:
A1 : Provocative business
A2 : Consultative business
A3 : B2C business
A4 : B2B business-(Correct Alternative)

Objective Question 389. A graph that describes how well an acceptance plan discriminates between good and
bad lots is called __________.
A1 : Learning curve
A2 : Operating characteristic curve-(Correct Alternative)
A4 : Acceptable quality curve

Objective Question 390. The minimum stock level is calculated as:

A1 : (Reorder level + Depletion rate) * Normal delivery time
A2 : (Reorder level + Depletion rate) / Normal delivery time
A3 : Reorder level + (Depletion rate * Normal delivery time)
A4 : Reorder level – (Depletion rate * Normal delivery time)-(Correct Alternative)

Objective Question 391. The time between placement and receipt of the order is called _______.
A1 : Cycle time
A2 : Lead time-(Correct Alternative)
A3 : Takt time
A4 : Cycle Counting

Objective Question 392. Mr.'A' enters into a contract with a minor 'B'. The contract is _______.
A1 : valid
A2 : void
A3 : void ab initio-(Correct Alternative)
A4 : voidable

Objective Question 393. A contract by which one party promises to save the other from loss caused to him by
the conduct of the promisor himself, or by the conduct of any other person, is called as _________.
A1 : wagering contract
A2 : contract of indemnity-(Correct Alternative)
A3 : contingent contract
A4 : standard form of contracts

Objective Question 394. "In a contract between the partners, there will not be any provision regarding the
duration of the partnership, or determination of their partnership". This kind of partnership is called as
________.
A1 : Partnership-at-will-(Correct Alternative)
A2 : Particular partnership
A3 : Partnership not created by status
A4 : Partnership created by status

Objective Question 395. The Limited Liability Partnership (Amendment) Act, came into force in the year
_________.
A1 : 2008
A2 : 2013
A3 : 2021-(Correct Alternative)
A4 : 2023

Objective Question 396. The minimum number of partners required for incorporating a Limited Liability
Partnership is ___________.
A1 : Two-(Correct Alternative)
A2 : Three
A3 : Five
A4 : Ten

Objective Question 397. Which section of the Negotiable Instruments Act, 1881 deals with dishonour of
cheques for insufficiency of funds?
A1 : Section 100
A2 : Section 116
A3 : Section 138-(Correct Alternative)
A4 : Section 145

Objective Question 398. In case of dishonour of cheques, no court inferior to that of a ______________, shall
try any offence punishable under the provisions of Negotiable Instruments Act, 1881.
A1 : Metropolitan Magistrate or a Judicial Magistrate of the first class-(Correct Alternative)
A2 : Sessions Court
A3 : Munsif Court
A4 : High Court
Objective Question 399. When order quantity of inventory increases, __________.
A1 : Ordering cost decreases -(Correct Alternative)
A2 : Ordering cost increases
A3 : Holding cost decreases
A4 : Set-up cost increases

Objective Question 400. A method for dividing on-hand inventory into three classifications based on annual
dollar volume is called:
A1 : ABC analysis-(Correct Alternative)
A2 : VED Analysis
A3 : FSN Analysis
A4 : XYZ Analysis

Objective Question 401. 20 percent of the inventory items will account for about 80 percent of the inventory
value. This principle is called:
A1 : Little’s Law
A2 : Pareto’s law-(Correct Alternative)
A3 : Peter's law
A4 : Lewis's law

Objective Question 402. The loss of inventory that can be attributed to factors such as employee theft,
shoplifting, administrative error, vendor fraud, damage, and cashier error is called:
A1 : Stock outs
A2 : Contraction
A3 : Diminution
A4 : Shrinkage-(Correct Alternative)

Objective Question 403. _________________ heuristic is based on the philosophy that we place an order for a
quantity that is equal to the demand for any given period.
A1 : Lot-for-Lot-(Correct Alternative)
A2 : Part-Period Balancing
A3 : Least Unit Cost
A4 : Silver-Meal

Objective Question 404. Ordering Costs is the combination of: ___________

A1 : Cost of Administration, Cost of Transportation and Cost of Storage
A2 : Cost of Administration, Cost of Transportation and Cost of Inspection-(Correct Alternative)
A3 : Cost of Inventory Risks, Cost of Transportation and Cost of Inspection
A4 : Cost of Inventory Risks, Cost of Transportation and Cost of servicing inventory

Objective Question 405. ________________ is the probability that the amount of inventory on hand during
the lead time is sufficient to meet the expected demand.
A1 : Optimal level
A2 : Inventory level
A3 : Service level-(Correct Alternative)
A4 : Safety stock level

Objective Question 406. When on-hand inventory falls below a predetermined minimum level, order a quantity
that will take the inventory back up to its predetermined maximum level. This Inventory system is called:
A1 : Fixed-order quantity
A2 : Min-max system-(Correct Alternative)
A3 : Lot-for-lot
A4 : Order in periods

Objective Question 407. A unique identifier for a product, typically assigned by a retailer or manufacturer is
called: ____________,
A1 : Unique product identifier
A2 : Stock Maintaining Unit
A3 : Stock Keeping Unit-(Correct Alternative)
A4 : Unique Stock identifier

Objective Question 408. Extra units in inventory to help reduce stock-outs are called:
A1 : Transit inventory
A2 : Just-in-time inventory
A3 : Reorder point
A4 : Safety stock-(Correct Alternative)

Objective Question 409. The cost to prepare a machine or process for production is called :
A1 : Set-up cost-(Correct Alternative)
A2 : Carrying cost
A3 : Shortage cost
A4 : Ordering cost

Objective Question 410. What is the primary purpose of holding inventories in a business?
A1 : To generate dividends for shareholders
A2 : To increase the company's stock price
A3 : To meet customer demand and ensure smooth operations-(Correct Alternative)
A4 : To provide collateral for securing loans

Objective Question 411. Safety stock is used in inventory management to:

A1 : Account for shrinkage and theft of inventory
A2 : Maintain buffer stock to avoid stockouts-(Correct Alternative)
A3 : Track the sales performance of inventory items
A4 : Determine the optimal order quantity for inventory

Objective Question 412. What is the strategic role of stock in business operations?
A1 : Stock serves as a buffer to meet unexpected increases in customer demand. -(Correct Alternative)
A2 : Stock helps to improve cash flow by reducing inventory holding costs.
A3 : Stock enables businesses to negotiate better prices with suppliers.
A4 : Stock plays a minor role and does not significantly impact business operations.

Objective Question 413. What does the economic order quantity (EOQ) formula aim to determine?
A1 : The maximum quantity of inventory to be ordered at once
A2 : The minimum quantity of inventory required to meet demand
A3 : The optimal order quantity that minimizes total inventory costs-(Correct Alternative)
A4 : The average demand rate for inventory items

Objective Question 414. Price discounts from suppliers refer to:

A1 : Discounts provided by suppliers for high demand products
A2 : Discounts offered by suppliers based on customer loyalty
A3 : Reduced prices for inventory items purchased in bulk or quantity -(Correct Alternative)
A4 : Special promotional prices for new products in the market

Objective Question 415. How is inventory reflected on the income statement?

A1 : As a revenue item
A2 : As an expense item -(Correct Alternative)
A3 : As a liability item
A4 : As an equity item

Objective Question 416. Ratio analyses in inventory management are used to:
A1 : Determine the value of obsolete stock
A2 : Assess the profitability and efficiency of inventory management-(Correct Alternative)
A3 : Estimate the market value of inventory
A4 : Calculate the carrying cost of inventory

Objective Question 417. Universal Product Code (UPC) and European Numbering System (ENS) are
examples of popular symbologies used in:
A1 : Financial transactions and banking operations
A2 : Supply chain management and inventory control-(Correct Alternative)
A3 : Electronic data interchange and communication systems
A4 : Medical and healthcare record-keeping

Objective Question 418. Replenishment costs in inventory management primarily include:

A1 : Costs associated with stock market transactions
A2 : Expenses related to warehouse maintenance and utilities
A3 : Costs incurred in replenishing inventory levels, such as ordering and carrying costs -(Correct Alternative)
A4 : Costs of implementing just-in-time (JIT) inventory systems

Objective Question 419. Which of the following is an example of an independent demand inventory item?
A1 : Raw materials used in the production process
A2 : Finished goods ready for customer delivery -(Correct Alternative)
A3 : Spare parts for equipment maintenance and repair
A4 : Packaging materials for product packaging
Objective Question 420. Shop order 7777 is for 600 of part 8900. From the routing file, it is found that
operation 20 is done on work center 300. The setup time is 3.5 hours, and run time is 0.233 hours per piece.
What is the required capacity on work center 300 for shop order 7777?
A1 : 140.3 standard hours
A2 : 143 standard hours
A3 : 143.3 standard hours-(Correct Alternative)
A4 : 140 standard hours

Objective Question 421. Consider the following financial data from the past year for Midwest Outdoor
Equipment Corporation. Gross Income - $25,240,000 Total Sales - $24,324,000 Total Credit Sales -
$18,785,000 Net Income - $2,975,000 Cost of Goods Sold - $12,600,000 Total Assets - $10,550,000 Average
Inventory - $2,875,000 Average Receivables - $3,445,000 a) Compute the receivable turnover ratio. b) Compute
the inventory turnover ratio. c) Compute the asset turnover ratio.
A1 : a=4.383, b=5.453, c= 2.306
A2 : a=2.306, b=5.453, c= 4.383
A3 : a=5.453, b=4.383, c= 2.306-(Correct Alternative)
A4 : a=5.453, b=2.306, c= 4.383

Objective Question 422. A firm that produces wood shutters and bookcases has received two orderd for
shutters: one for 100 shutters and one for 150 shutters. The 100- unit order is due at the start of the week 4 of
the current schedule and the 150-unit order is due for delivery at the start of week 8. Each shutter consists of
four slatted wood sections and two frames. The wood sections are made by the firm and fabrication takes one
week. The frames are ordered and lead time is two weeks. Assembly of the shutters requires one week. There
are currently 70 wood sections on hand. What will be: a) the size and b) timing of planned order releases
ncessary to meet requirement under Lot-for Lot ordering?
A1 : Size=100, Time = Week 8
A2 : Size=150, Time = Week 10
A3 : Size=100, Time = Week 10
A4 : Size=150, Time = Week 8-(Correct Alternative)

Objective Question 423. What type of layout is employed in a fitness centre?

A1 : Product Layout
A2 : Process Layout-(Correct Alternative)
A3 : Fixed Position Layout
A4 : Combination Layout

Objective Question 424. On the average, a firm has 10 weeks of work-in-process, and annual cost of goods
sold is $15 million. Assuming that the company works 50 weeks a year: a. What is the dollar value of the work-
in-process? b. If the work-in-process could be reduced to 7 weeks and the annual cost of carrying inventory was
20% of the inventory value, what would be the annual saving?
A1 : a. $1,000,000; b. $90,000
A2 : a. $1,500,000; b. $90,000-(Correct Alternative)
A3 : a. $1,500,000; b. $80,000
A4 : a. $1,000,000; b. $80,000
Objective Question 425. Sailmaster makes high-performance sails for competitive windsurfers. Below is
information about the inputs and outputs for one model, the Windy 2000. Units sold - 1,217 1.0 0.25Sale price
each - $1,700 Total labor hours - 46,672 Wage rate - $12/hour Total materials - $60,000 Total energy - $4,000
Calculate the productivity in sales revenue/labor expense.
A1 : 2
A2 : 2.69
A3 : 3
A4 : 3.69-(Correct Alternative)

Objective Question 426. A company has a factory that is designed so that it is most efficient (average unit cost
is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output
capability of 17,250 units per month, and can produce as little as 7000 units per month without corporate
headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the
capacity utilization rate in October for this factory?
A1 : 72.83%-(Correct Alternative)
A2 : 72%
A3 : 68.83%
A4 : 68%

Objective Question 427. What is the transit time between work centers?
A1 : run time
A2 : move time-(Correct Alternative)
A3 : setup time
A4 : wait time

Objective Question 428. Goods are acquired in greater quantities than the actual demand to achieve _______
in purchasing and transportation.
A1 : Continuation
A2 : Quality
A3 : Cost Efficiency-(Correct Alternative)
A4 : Potential value

Objective Question 429. A/An ________ facility acts as a low-cost supply source for markets located outside
of the country in which the facility is located.
A1 : offshore -(Correct Alternative)
A2 : onshore
A3 : outpost
A4 : lead

Objective Question 430. The type of control chart is determined by the data utilised in its production. If the
data is based on measurements, it is referred to be _______, and a _______ control chart is employed.
A1 : continuous, variable-(Correct Alternative)
A2 : discreet, variable
A3 : continuous, attribute
A4 : discreet, attribute
Objective Question 431. The ISO 9000 Series was accepted verbatim as the ANSI/ASQC _________ Series
in the United States in 1987.
A1 : P-90
A2 : S-90
A3 : Q-90 -(Correct Alternative)
A4 : I-90

Objective Question 432. Which of the following is excluded from the four M's of production?
A1 : Machines
A2 : Materials
A3 : People
A4 : Places-(Correct Alternative)

Objective Question 433. In which stage of the material management is MRP used?
A1 : Planning-(Correct Alternative)
A2 : Staffing
A3 : Organization
A4 : Directing

Objective Question 434. ________ are orders placed with a vendor that signify a commitment to make or buy
something.
A1 : Planned order
A2 : Released order
A3 : Scheduled receipts-(Correct Alternative)
A4 : Open order

Objective Question 435. The primary component of material management is _____.

A1 : Return on Investment-(Correct Alternative)
A2 : Return on Supply
A3 : Review on Investment
A4 : Review on Audit

Objective Question 436. Which component is excluded in fourth-party logistics (4PL)?

A1 : Control Room (intelligence)
A2 : Resource Providers
A3 : Information
A4 : Recycling-(Correct Alternative)

Objective Question 437. Which of the following elements is a neglected part of the "Logistics Mix"?
A1 : Warehousing
A2 : Information Systems
A3 : Transportation
A4 : Reverse Logistics-(Correct Alternative)
Objective Question 438. In which stage of the material management, the inventory control and quality are
involved?
A1 : Pre-planning stage
A2 : Planning stage
A3 : Monitoring stage-(Correct Alternative)
A4 : Action Stage

Objective Question 439. Quality planning roadmap was evolved by whom?

A1 : Juran-(Correct Alternative)
A2 : Deming
A3 : Ishikawa
A4 : Sarkis

Objective Question 440. At what stage or point in the logistics process is the term "warehousing" used to refer
to transportation?
A1 : zero km per hour
A2 : zero miles per hour-(Correct Alternative)
A3 : zero meters per hour
A4 : Zero cm per hour

Objective Question 441. The maximum production of a firm is 500 units of a certain good and the shadow
price of the available resource is 3. What would be the effect on the maximum production level if the resource
were increased by one unit?
A1 : The maximum production level would not be affected
A2 : The maximum production level would reduce by 3 units
A3 : The maximum production level would increase by 3 units-(Correct Alternative)
A4 : The maximum production level would increase by 15 units

Objective Question 442. A firm has a demand distribution during a constant lead time with a standard
deviation of 250 units. The firm wants to provide 98% service. How much safety stock should be carried for
k=2.05 for 98% service level.
A1 : 250
A2 : 512-(Correct Alternative)
A3 : 260
A4 : 560

Objective Question 443. The total logistics cost factors need to be balanced against the_____
A1 : Total expected transportation needs
A2 : Lead time expectation
A3 : Replenishment time forecasts
A4 : Customer service factors-(Correct Alternative)

Objective Question 444. What is the term used to describe the practice of combining different transportation
modes to leverage the advantages offered by each?
A1 : Intramodal transport
A2 : Intermodal transportation-(Correct Alternative)
A3 : Freight forwarding
A4 : bimodal logistics

Objective Question 445. Which is a kind of distribution strategy in the transportation network design?
A1 : Milk-run-(Correct Alternative)
A2 : LNA
A3 : RORO
A4 : Decoupling

Objective Question 446. The average inventory in the purchase model of inventory without shortage is
__________.
A1 : Order size divided by 2-(Correct Alternative)
A2 : Order size divided by 4
A3 : Order size divided by 3
A4 : Order size divided by 1.5

Objective Question 447. MPS is an important input to __________.

A1 : Line balancing
A2 : Bill of Material
A3 : Aggregate planning
A4 : MRP-(Correct Alternative)

Objective Question 448. Which type of ship carries unpackaged goods?

A1 : Container ship
A2 : Bulk carriers-(Correct Alternative)
A3 : RO-RO
A4 : Tankers

Objective Question 449. Which type of trucks are used to carry perishable goods?
A1 : Box truck
A2 : Flatbed truck
A3 : Tanker trucks
A4 : Refrigerated truck-(Correct Alternative)

Objective Question 450. What does KPI stand for?

A1 : Key process indicator
A2 : Key product information
A3 : Key product indicator
A4 : Key performance indicator-(Correct Alternative)

Objective Question 451. A Bill of Materials describes the Components and ___________ at various stages of
manufacturing.
A1 : Process Specifications
A2 : Subassemblies-(Correct Alternative)
A3 : Cost involved
A4 : Quantities Required

Objective Question 452. Inventory that consists of products that are processed into finished goods are
_________ Inventory.
A1 : Work-In-Progress-(Correct Alternative)
A2 : MRO
A3 : Maintenance
A4 : Raw Material

Objective Question 453. The Bullwhip effect of Supply chain distorts _______ information among various
stakeholders.
A1 : Forecast
A2 : Production
A3 : Demand-(Correct Alternative)
A4 : Lead Time

Objective Question 454. ________ help in better understanding of customer needs and enhance consumer
contacts.
A1 : POS Systems POS
A2 : ERP Systems ERP
A3 : CRM Systems-(Correct Alternative)
A4 : TPVS systems TPVS

Objective Question 455. __________ is the term that refers to the amount of permissible variation between
inventory record and physical count.
A1 : Variance
A2 : Tolerance-(Correct Alternative)
A3 : Permissible record Error
A4 : Level Accuracy

Objective Question 456. In a business letter, the full form of abbreviation N.B. is ______.
A1 : Nota Bene-(Correct Alternative) Nota Bene
A2 : Note Before Note Before
A3 : Noted By Noted By
A4 : Not Broken Not Broken

Objective Question 457. What is the time period within which LLP shall file Annual Return with the
Registrar?
A1 : Within 30 days of closure of its financial year.
A2 : Within 45 days of closure of its financial year.
A3 : Within 60 days of closure of its financial year.-(Correct Alternative)
A4 : Within 15 days of closure of its financial year.

Objective Question 458. If the bill is drawn and accepted in the same country, then it is known as:
A1 : Trade Bill
A2 : Foreign Bill
A3 : Inland Bill-(Correct Alternative)
A4 : Accommodation Bill

Objective Question 459. To maximize the profit, a firm should ________.

A1 : Provide little customer service
A2 : Provide high production costs
A3 : Provide the lowest inventory investment-(Correct Alternative)
A4 : Provide the highest distribution costs

Objective Question 460 . _______ is the ability to manufacture maximum amount of goods and service.
A1 : Capacity-(Correct Alternative)
A2 : Priority
A3 : Planning
A4 : Control

Objective Question 461. Fluctuation Inventory is also called as __________.

A1 : Anticipation Inventory
A2 : Lot-Size Inventory
A3 : Buffer Inventory-(Correct Alternative)
A4 : Hedge Inventory

Objective Question 462. All the expences incurred by the firm due to the volume of inventory carried is called
__________.
A1 : Carrying Cost-(Correct Alternative)
A2 : Item Cost
A3 : Capacity-Associated Cost
A4 : Stockout Cost

Objective Question 463. ________ is a type of software system that helps organizations automate and manage
core business processes for optimal performance.
A1 : Enterprise Resource Planning-(Correct Alternative)
A2 : Smartsheet
A3 : Kissflow
A4 : Process Street

Objective Question 464. Fokker Friendship Model is associated with __________.

A1 : Rail Mode
A2 : Air Mode-(Correct Alternative)
A3 : Road Mode
A4 : Water mode

Objective Question 465. __________ is connected with the efficient selection and utilization of materials.
A1 : Cost Reduction
A2 : Cost Control
A3 : Value engineering-(Correct Alternative)
A4 : Value Improvement

Objective Question 466. __________ is defined as Human capabilities and limitations must be recognized and
respected in the design of material handling tasks and equipment to ensure safe and effective operations.
A1 : Work principle
A2 : Ergonomic principle-(Correct Alternative)
A3 : system principle
A4 : Automation Principle

Objective Question 467. __________ means that information flow and physical material flow should be
integrated and treated as concurrent activities.?
A1 : Work principle
A2 : Ergonomic principle
A3 : System principle-(Correct Alternative)
A4 : Automation Principle

Objective Question 468. __________ represents the business chain or intermediaries via which the final buyer
purchases a good or services.
A1 : Production
A2 : Distribution Channel-(Correct Alternative)
A3 : Place
A4 : Price

Objective Question 469. BOM stands for _______.

A1 : Basic Offshore Materials
A2 : Basic Ordering Material
A3 : Band Of Materials
A4 : Bill Of Material-(Correct Alternative)

Objective Question 470. __________ means, giving people the authority to make decisions and take action in
their work areas without getting prior approval.
A1 : Empowerment-(Correct Alternative)
A2 : Continuous Process Improvement
A3 : Training
A4 : Performance

Objective Question 471. __________ are very important in both just-in-time manufacturing and total quality
management.
A1 : Supply Chain
A2 : Supplier partnerships-(Correct Alternative)
A3 : Continuous Process Improvement
A4 : Cross Checking

Objective Question 472. __________ is associated with checking and auditing quality in the organization,
which includes product inspection, quality audits, testing, and calibration.
A1 : Appraisal cost-(Correct Alternative)
A2 : Internal failure cost
A3 : External failure costs
A4 : Prevention cost

Objective Question 473. __________ is the cost, a business incurs over a certain period of time, to hold and
store its inventory.
A1 : Carrying cost-(Correct Alternative)
A2 : Competitive edge
A3 : material cost
A4 : variable cost

Objective Question 474. __________ is receiving and accounting of raw-materials, bought out parts, spares,
tools, equipment and other items.
A1 : Storage
A2 : Retrieval
A3 : Issue
A4 : Receipt-(Correct Alternative)

Objective Question 475. Minimization of scrap, surplus and obsolescence through proper inventory control,
and effective disposal of surplus and obsolete items are termed as _________.
A1 : TQM TQM
A2 : Surplus Management-(Correct Alternative)
A3 : Quality Control
A4 : SCM 1.0 0.25

Objective Question 476. __________ is the theft of part of the contents of a stock.
A1 : Layout
A2 : Location
A3 : Space Requirement
A4 : Pilferage-(Correct Alternative)

Objective Question 477. The Economic Order Quantity (EOQ) is calculated as ______.
A1 : (2DS/H)^1/2-(Correct Alternative)
A2 : (4DS/H)^1/2
A3 : (DS/2H)^1/2
A4 : (DS/4H)^1/2

Objective Question 478. __________ is prepared on the basis of materials received note. This book records
the purchases which are received by the stores.
A1 : Material issue book
A2 : Materials Receipt book-(Correct Alternative)
A3 : Material Returned book
A4 : Material Transfer book

Objective Question 479. A __________ may be defined as a schedule of all the materials and supplies
required for the execution of a specific work order or job.
A1 : Re-purchase order
A2 : Bill of materials-(Correct Alternative)
A3 : Bincard
A4 : Quotation

Objective Question 480. __________ is a portion of visible wastage of materials having a low money or use
value.
A1 : Obsolescence
A2 : Spoilage
A3 : Waste
A4 : Scrap-(Correct Alternative)

Objective Question 481. __________ is defined as "units of output which fail to reach the required standard of
quality or specification."
A1 : Spoilage-(Correct Alternative)
A2 : Waste
A3 : Scrap
A4 : Fixing responsibility

Objective Question 482. Specialized computer languages, such as G and M codes, and coordinate locations
are used for programming __________ machines.
A1 : VMC
A2 : CNC-(Correct Alternative)
A3 : CPI
A4 : CIL

Objective Question 483. Inventory held for sale in the course of business is known as:
A1 : Finished Goods-(Correct Alternative)
A2 : Raw Material
A3 : Work-in-progress
A4 : Parts and components

Objective Question 484. AVGS stands for __________.

A1 : Automatic Graded vehicle systems
A2 : Automatic Guided Vehicle Systems-(Correct Alternative)
A3 : Automatic graded Vessel System
A4 : Automatic Guided Vessel System Automatic Guided Vessel System

Objective Question 485. To retrieve materials, information is required about which materials are to be picked
and to what address they should be delivered and to be conveyed in a __________.
A1 : Purchase order
A2 : replenishment order
A3 : picking order-(Correct Alternative)
A4 : make-to-order
Objective Question 486. The process of picking,pulling,packing, rating, palletizing, loading, shipping and
documenting an item is known as __________.
A1 : Shipment delivery preparation-(Correct Alternative)
A2 : Business-to - business
A3 : Buyers receiving site
A4 : Documentation

Objective Question 487. What is the full form of abbreviation ASN, in warehouse?
A1 : Accuracy Shipment Notice
A2 : Advanced Shipment Notice-(Correct Alternative)
A3Appeal Shipment Notice
A4 : Aviation and Shipment Notice

Objective Question 488. In some instances, the third party that will perform a given supply chain function has
been identified, and the firm enters into a negotiation to set the __________.
A1 : Cash Discount
A2 : Payment Schedule
A3 : terms of contract-(Correct Alternative)
A4 : Quality consideration

Objective Question 489. __________ is likely to result in a positive outcome only if the value the buyer
places on outsourcing the supply chain function to this supplier is at least as large as the value the supplier
places on performing the function for the buyer.
A1 : Cash Discount
A2 : Negotiation-(Correct Alternative)
A3 : terms of contract
A4 : Quality consideration

Objective Question 490. The difference between the values of the buyer and seller is referred to as the
__________.
A1 : Surplus demand
A2 : bargaining Surplus-(Correct Alternative)
A3 : Principles of Negotiation
A4 : effective strategy

Objective Question 491. The term E-Business was coined by __________ marketing and Internet team in
1996.
A1 : Dell
A2 : IBM-(Correct Alternative)
A3 : Acer
A4 : HP

Objective Question 492. Packaging which ensures an added safety layer protecting products from bumps and
jerks during transportation?
A1 : Ancillary Packaging
A2 : Secondary Packaging
A3 : Primary Packaging
A4 : Tertiary Packaging-(Correct Alternative)
Objective Question 493. Six sigma is a statistical measure that translates into a target of no more than
__________ defects per million products and includes customer service. (Six sigma)
A1 : 2.5
A2 : 3.4-(Correct Alternative)
A3 : 2
A4 : 3

Objective Question 494. The basic PDSA cycle was first developed by __________.
A1 : Deming
A2 : Shewhart-(Correct Alternative)
A3 : Mark.H.Hagan
A4 : Genichi taguchi

Objective Question 495. The tendering process can be meant as a part of the procurement process which
involves a formal request of offers for providing services example of invitation to tenders, the assessment of the
received offers of__________with the final awarding decision that leads to the selection of the awarding
tenderer.
A1 : Client
A2 : Service Providers-(Correct Alternative)
A3 : agreement
A4 : formal request

Objective Question 496. __________ are associated with procurement of the materials that constitute the
inventory, the cost of generating, processing and handling an order, along with its related paperwork.
A1 : Opportunity costs
A2 : Ordering costs-(Correct Alternative)
A3 : Property costs
A4 : Storage costs

Objective Question 497. If a work content of 10 hours has to be produced at a rate of 400 a week, and the
normal working is 40 hours, the number of operators required is __________.
A1 : 120
A2 : 150
A3 : 100-(Correct Alternative)
A4 : 160

Objective Question 498. Designing products for "_________" is the norm in modern enterprises.
A1 : end-of-life-(Correct Alternative)
A2 : Quality system
A3 : product recovery
A4 : cannibalization

Objective Question 499. TPM was originally defined by the ____________.

A1 : JIPM-(Correct Alternative)
A2 : JTPM
A3 : JIOM
A4 : JIQM
Objective Question 500. Total Productive Maintenance (TPM) is an extension of the _________________
philosophy to the maintenance function. TPM
A1 : SCM
A2 : TQM-(Correct Alternative)
A3 : BEP
A4 : POP

Objective Question 501. A/An ____________ with packaging or labelling capability allows postponement of
final production until actual demand is known.
A1 : Economy
A2 : Stock Spotting
A3 : Warehousing-(Correct Alternative)
A4 : Consolidation

Objective Question 502. Dynamic _______ is used to investigate the dynamics of multiple-stage inventories.
A1 : Lositics planning
A2 : Linear Programming
A3 : Simulation-(Correct Alternative)
A4 : Logistic design

Objective Question 503. When a carrier transports a truckload from point A to point B, there is an implicit
decision to incur a/an ____ for the backhaul from point B to point A. Either the cost must be covered by the
original shipper from A to B, or a back-haul shipper must be found.
A1 : other costs
A2 : class rates
A3 : insurance cost
A4 : Joint cost-(Correct Alternative)

Objective Question 504. The goods received are entered into the ________ document which keeps the record
of the P.O date of receipt, lorry receipt and so on.
A1 : Inward Consignment Register-(Correct Alternative)
A2 : Quotation
A3 : Daily Receipt
A4 : Daily receipt register

Objective Question 505. The Intergovernmental Organisation for International Carriage by Rail (OTIF) has
developed the uniform systems of law which apply to international freight traffic by rail. These systems of law
are known as the ____of 9 May 1980 (1999 Protocol).
A1 : COTIF-(Correct Alternative)
A2 : CIM
A3 : SOTIF
A4 : TOTIF

Objective Question 506. SMGS stands for_______.

A1 : Society Medieval Guidance System Society Medieval Guidance System
A2 : Societal Medieval Goods System Societal Medieval Goods System
A3 : Surface Movement Guidance system-(Correct Alternative) Surface Movement Guidance system
A4 : Societal movement Guidance System Societal movement Guidance System

Objective Question 507. A _______ is essentially a contract, subject to basic requirements of contract law. It
must be the result of an offer and acceptance and have mutual obligations or promises and there must be
consideration or mutual benefits.
A1 : Wartime Development
A2 : Charter Party-(Correct Alternative)
A3 : Bareboat charter
A4 : pro hac vice

Objective Question 508. Capital costs of warehouse or store is the example of __________.
A1 : Opportunity costs
A2 : fixed cost-(Correct Alternative)
A3 : variable cost
A4 : alternative cost

Objective Question 509. The_____ monitors the spread or variability of a process and is used to detect
changes in the variability of the process.
A1 : X Chart
A2 : R Chart-(Correct Alternative)
A3 : Flow Chart
A4 : C Chart

Objective Question 510. __________is also termed as Lot Tolerance Percent Defective(LTPD).
A1 : Rejectable quality level-(Correct Alternative)
A2 : Indifference quality level
A3 : Average outgoing quality
A4 : Average Outgoing quality level

Objective Question 511. The ISO 9000 series was introduced in the year ____.
A1 : 1978 1978
A2 : 1987-(Correct Alternative) 1987
A3 : 1981 1981
A4 : 1998 1998 1.0 0.25

Objective Question 512. The building bricks of TQM are Leadership, ________ and training.
A1 : Trust
A2 : reliance
A3 : empowerment
A4 : Teamwork-(Correct Alternative)

Objective Question 513. Managers should start by comparing the variability in the orders they receive from
their customers with the variability in orders they place with their suppliers. This helps a firm quantify its own
contribution to the _________.
A1 : bullwhip effect-(Correct Alternative)
A2 : Raman effect
A3 : Devote resources to coordination
A4 : management commitment

Objective Question 514. A/An _______ is a voluntary relationship between two or more organizations that is
formed on the mutual need of these independent organization without being constrained by ownership, control,
equity.
A1 : Strategic alliance-(Correct Alternative)
A2 : joint venture
A3 : merger
A4 : Acquisition

Objective Question 515. The Accounting Standard _______ deals with accounting for amalgamations and the
treatment of any resultant goodwill or services.
A1 : AS 10
A2 : AS 12
A3 : AS 14-(Correct Alternative)
A4 : AS 13

Objective Question 516. The ______ demands that the least favourable situation to the firm will materialise
and precautions should be taken on that basis.
A1 : Convention of Materiality
A2 : Convention of Conservatism-(Correct Alternative)
A3 : Convention of Consistency
A4 : Convention of Full Disclosure

Objective Question 517. If the bank overdraft as per cash book is ₹ 9,000, Uncleared cheques is ₹ 1,700,
unpresented cheques is ₹ 3,000 then the bank overdraft as per pass book will be ________.
A1 : ₹ 10,300 ₹ 10,300
A2 : ₹ 13,700 ₹ 13,700
A3 : ₹ 4,300 ₹ 4,300
A4 : ₹ 7,700-(Correct Alternative)

Objective Question 518. Rectify the following:A purchase of ₹134 had been posted to the creditor's account
as ₹120.
A1 : Suspense A/c Dr. ₹ 14 To Creditors A/c ₹ 14-(Correct Alternative)
A2 : Creditors A/c Dr. ₹ 14 To Suspense A/c ₹ 14
A3 : Suspense A/c Dr. ₹ 134 To Creditors A/c ₹ 134
A4 : Creditors A/c Dr. ₹ 134 To Suspense A/c ₹ 134

Objective Question 519. Which of the following is the correct entry for the given transaction? Instead of
crediting ₹1,024 in Madan's account ₹430 were debited in his account.
A1 : Madan A/c Dr. ₹ 1,024 To Suspense A/c ₹ 1,024
A2 : Suspense A/c Dr. ₹ 1,024 To Madan A/c ₹ 1,024
A3 : Madan A/c Dr. ₹ 1,454 To Suspense A/c ₹ 1,454
A4 : Suspense A/c Dr. ₹ 1,454 To Madan A/c ₹ 1,454-(Correct Alternative)
Objective Question 520. Some assets are discarded before they are worn out because of changed conditions
which is called as __________.
A1 : Wear and tear
A2 : Obsolescence-(Correct Alternative)
A3 : Efflux of time
A4 : Accidents

Objective Question 521. The cost of asset includes the invoice price of the _________ plus costs essential to
bring the assets to a usable condition, such as freight, insurance and installation charges.
A1 : asset less trade discount-(Correct Alternative)
A2 : asset add trade discount
A3 : asset less cash discount
A4 : asset add cash discount

Objective Question 522. A machine was purchased on 1st July 1983 at a cost of ₹ 14,000 and ₹ 1,000 was
spent on its installation. The depreciation is written off @10% on the original cost every year. The books are
closed on 31st December each year. The machine was sold for ₹ 9,500 on 31st March 1985. Therefore profit or
loss on sale of machine is ________.
A1 : Loss on sale of machine ₹ 2,675
A2 : Loss on sale of machine ₹ 2,775
A3 : Loss on sale of machine ₹ 2,875-(Correct Alternative)
A4 : Loss on sale of machine ₹ 2,975

Objective Question 523. When Partial repossession of goods, in the books of hire vendor: Repossessed goods
as per hire vendor's valuation are _______ and ________.
A1 : Debited to Repossessed goods Account and Credited to hire vendor's Account
A2 : Debited to hire purchaser's Account and Credited to Repossessed goods Account
A3 : Debited to Repossessed goods Account and Credited to hire purchaser's Account-(Correct Alternative)
A4 : Debited to hire vendor's Account and Credited to Repossessed goods Account

Objective Question 524. Which of the accounting standard helps the users of financial statements to make
more informed judgements of the enterprise as a whole?
A1 : AS 16
A2 : AS 14
A3 : AS 13
A4 : AS 17-(Correct Alternative)

Objective Question 525. Which accounting standard is related to Intangible Assets?

A1 : AS 26-(Correct Alternative)
A2 : AS 28
A3 : AS 6
A4 : AS 13

Objective Question 526. Which of the accounting conventions talks about the principle of 'playing safe'?
A1 : Full Disclosure
A2 : Conservatism-(Correct Alternative)
A3 : Consistency
A4 : Materiality

Objective Question 527. Which of the following accounting concepts is important for valuation of assets and
liabilities?
A1 : Going concern concept-(Correct Alternative)
A2 : Business entity concept
A3 : Money measurement concepts
A4 : Dual concepts

Objective Question 528. 'Cash payments to acquire fixed assets including intangibles' - comes under which of
the following headings when preparing the cash flow statement?
A1 : Operating activities
A2 : Investing activities-(Correct Alternative)
A3 : Financing activities
A4 : Cash and cash equivalents

Objective Question 529. Disclosure of goodwill arising out of acquisition of investment in the associate in
consolidated financial statement is required by __________.
A1 : AS 23-(Correct Alternative)
A2 : AS 18
A3 : AS 4
A4 : AS 17

Objective Question 530. The cash book shows the balance of Rs.9,000 but the bank Pass book shows a
different figure. The difference is found to be Rs.100 credit transfer paid direct to the bank by a debtor. What
would be the balance as per bank pass book?
A1 : Rs.8,900
A2 : Rs.9,100-(Correct Alternative)
A3 : Rs.8,800
A4 : Rs.9,200

Objective Question 531. How much amount of rent is transferred to manufacturing account, if 3/4th of the rent
is used for factory and the total rent amount given is Rs.48,000?
A1 : Rs.36,000-(Correct Alternative)
A2 : Rs.22,000
A3 : Rs.24,000
A4 : Rs.28,000

Objective Question 532. Post closing, the trial balance is prepared after the preparation of ______________.
A1 : Trading and Profit & Loss a/c-(Correct Alternative)
A2 : Manufacturing Account
A3 : Balance sheet
A4 : Suspense account

Objective Question 533. When the assets are purchased in group, it is called as ____________.
A1 : Outright Purchase
A2 : Basket Purchase-(Correct Alternative)
A3 : Trade -ins
A4 : Assets constructed by equity

Objective Question 534. Permission of court is necessary to repossess the goods by the owner if the hire
purchase price is __________.
A1 : less than Rs. 75,000 and one-fourth of the price is paid
A2 : less than Rs. 75,000 and one-half of the price is paid
A3 : less than Rs.15,000 and one-half of the price is paid-(Correct Alternative)
A4 : less than Rs.15,000 and one-fourth of the price is paid

Objective Question 535. In the books of purchaser, when seller takes back the possession of complete goods,
any balance left in asset account is closed by transferring to _________.
A1 : Goods repossessed account
A2 : Vendor account
A3 : Profit & Loss account-(Correct Alternative)
A4 : Interest account

Objective Question 536. Calculate the cash price of a machine from the following information:Down payment
- Rs.10,000; Four annual installments at the end of each year - Rs.10,000; Rate of interest 5%.
A1 : Rs.45,459-(Correct Alternative)
A2 : Rs.54,459
A3 : Rs.45,549
A4 : Rs.54,549

Objective Question 537. A person is competent to contract if he is of _______________ .

A1 : The age of eighteen or above, is a citizen of India, and is qualified under the personal law to which he is
subject.
A2 : The age of majority according to the law to which he is subject, of sound mind and is not disqualified by
any law to which he is subject.-(Correct Alternative)
A3 : The age of fourteen or above, and is a citizen of India who is not convicted of a criminal offence.
A4 : The age of reason, is financially secure and qualified under his personal law.

Objective Question 538. A gratuitous bailment is terminated ____________ .

A1 : By the death either of the bailor or of the bailee-(Correct Alternative)
A2 : After the lapse of 24 hours.
A3 : At the end of the pleasure of the bailee.
A4 : On payment of consideration by the bailor.

Objective Question 539. Under the Sale of Goods Act, 1930, an agreement to sell becomes a sale
__________________ .
A1 : At the will of the seller.
A2 : When the payment is effected.
A3 : At the time when the property in the goods is intended by the buyer to be transferred to him.
A4 : When the time elapses or the conditions are fulfilled subject to which the property in the goods is to be
transferred.-(Correct Alternative)

Objective Question 540. In the absence of any usage or custom of trade to the contrary, the implied authority
of a partner empowers him to ____________ .
A1 : Submit a dispute relating to the business of the firm to arbitration.
A2 : Withdraw a suit or proceeding filed on behalf of the firm.
A3 : Acquire immovable property on behalf of the firm.
A4 : Bind the firm by his act done to carry on, in the usual way, business of the kind carried on by the firm.
(Correct Alternative)

Objective Question 541. Every limited liability partnership shall have ______________.
A1 : At least two designated partners who are individuals and at least one of them shall be a resident in India.
(Correct Alternative)
A2 : At least one designated partner who shall be a resident in India.
A3 : At least two individuals who are residents in India as designated partners.
A4 : At least three designated partners and at least two of them shall be individuals resident in India.

Objective Question 542. What is the penalty for carrying on a business using the words "limited liability
partnership" or "LLP" without being duly incorporated as a limited liability partnership?
A1 : Fine which shall not be less than five thousand rupees but which may extend to fifty thousand rupees.
A2 : Fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees.-(Correct
Alternative)
A3 : Fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees.
A4 : Fine which shall not be less than one lakh rupees but which may extend to ten lakh rupees.

Objective Question 543. The transfer of the right to a share of the profits of a limited liability partnership, by a
partner therein, _____________ .
A1 : By itself, causes the disassociation of the partner from the partnership.
A2 : By itself, causes the dissolution and winding up of the limited liability partnership.
A3 : By itself, is legally permitted.-(Correct Alternative)
A4 : By itself, entitles the transferee to participate in the management of the limited liability partnership.

Objective Question 544. A “cheque” is (a) ___________ drawn on (b)_________ and not expressed to be
payable (c) _______________.
A1 : (a) a demand draft (b) the payee's banker (c) on sight
A2 : (a) a bill of exchange (b) a specified banker (c) otherwise than on demand-(Correct Alternative)
A3 : (a) a money note (b)the payee's banker (c) otherwise than on sight
A4 : (a) a deposit certificate (b) the payer's banker (c) over the counter

Objective Question 545. If the indorser of a negotiable instrument signs his name only, the indorsement is said
to be ___________ .
A1 : "in choate
A2 : "in full"
A3 : “in blank".-(Correct Alternative)
 A4 : "sans recourse".

Objective Question 546. The Indian Contract Act came into force in the year_____________.
A1 : 1860
A2 : 1872-(Correct Alternative)
A3 : 1890
A4 : 1956

General Financial Rules 2017

Objective Question 1. Considering procurement of services, Terms of Reference (TOR) should include all
EXCEPT
1. Precise statement of objectives
2. List of key position
3. Schedule of completion of tasks
4. Inputs to be provided by the Ministry or Department

Objective Question 2. How many schedules are there in the Right to Information Act, of 2005
1. Four
2. One
3. Three
4. Two

Objective Question 3. In the GFR 2017, standards of financial propriety are mentioned in the
1. Rule 27
2. Rule 21
3. Rule 30
4. Rule 31

Objective Question 4. Which of the following rules of the GFR 17 is correctly matched with its principle?
(i) Rule 38 – Prompt disposal of cases of loss.
(ii) Rule 35 – Loss of immovable property by fire, flood etc.
1. Only I
2. Only II
3. Both I and II
4. Neither I not II

Objective Question 5. As per Rule 172 of GFR, advance payments demanded by firms should not exceed what
percentage of the contract value for private firms?
1. 30 Percent
2. 10
3. 20
4. 40

Objective Question 6. Which rule of GFR 2017 lays down the principles related to buy-back offer?
1. Rule 186
2. Rule 156
 3. Rule 176
4. Rule 196

Objective Question 7. Which of the following chapter in the GFR 2017 talks about inventory management?
1. Chapter 9
2. Chapter 8
3. Chapter 7
4. Chapter 5

Objective Question 8. Which of the following statements is correct regarding the CAPEX model?
I. In this model, Capital expenditures are used by the buyer.
II. They have a shorter-term benefit.
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 9. The chief information Commissioner or any information Commissioner shall be
removed from his office only by order of the……
1. Home Minister of India
2. President of India
3. Chief Justice of India
4. Prime Minister of India

Objective Question 10. As per rule 19 of the GFR 2017, individual remissions below what amount need not be
included in the annual statement showing the remissions of revenue and abandonment of claims?
1. Rupees one thousand
2. Rupees two thousand
3. Rupees three thousand
4. Rupees five hundred

Objective Question 11. In the context of procurement of goods, Quality Assurance (QA) consists of which of
the following components?
I. Defining quality standards
II. Measurement of quality
III. Planning assurance of quality
1. I and II
2. II and III
3. I, II and III
4. I and III

Objective Question 12. The procurement process for goods, works and/or services typically involves a set
cycle activities. Arrange the following activities in the correct order.
A. Bid Evaluation
B. Bid Invitation
C. Need assessment
D. Contract Execution
E. Disposal of scrap
1. CBADE
2. BADEC
3. CBAED
4. ADEBC
 Objective Question 13. Which of the following forms of the GFR 2017 are correctly matched?
I. GFR 11 – Sale account
II. GFR 17 – Register of fixed assets
III. GFR 12B – Form of Utilization Certificate (State Governments)
1. Only I
2. II and III
3. I, II and III
4. I and II

Objective Question 14. Report of Surplus, Obsolete and Unserviceable Stores for Disposal shall be prepared in
which of the following forms?
1. GFR 11
2. GFR 10
3. GFR 8
4. GFR 7

Objective Question 15. Which rule of the GFR 2017 deals with registration of suppliers?
1. Rule 120
2. Rule 130
3. Rule 140
4. Rule 150

Objective Question 16. Which rule of the GFR 2017 lays down the principles related to procurement of non-
consulting services?
1. Rule 194
2. Rule 197
3. Rule 198
4. Rule 200

Objective Question 17. Limited Tender Enquiry method of procurement can be used for tender value up to……
1. Rs. 25 lakh
2. Rs. 15 lakh
3. Rs. 55 lakh
4. Rs. 10 lakh

Objective Question 18. Which of the following standard methods of obtaining bids should be used to procure
goods?
I. Two-stage bidding
II. Electronic Reverse auctions
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 19. With respect to the procurement process, the bidding documents should contain which
of the following details?
I. Criteria for evaluation of bids
II. Essential terms of the procurement contract
 1. Only I
2. Only II
3. Both I and II
4. Neither I not II

Objective Question 20. Which rule of the GFR 2017 deals with Authorities competent to purchase goods?
1. Rule 145
2. Rule 137
3. Rule 142
4. Rule 135

Objective Question 21. The procedure to be followed in making public procurement must conform to which of
the following yardsticks?
I. Description of the subject matter of procurement
II. The specifications in terms of quality, type etc.
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 22. The price preference facility for small-scale industries will not apply to the
procurement of which of the following goods?
I. Paint items for the Railways
II. Medical and Electro-medical equipment
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 23. The Ministries/Departments shall project their Annual Procurement Plan of goods and
services on GeM portal within…………… of budget approval.
1. 20 days
2. 10 days
3. 25 days
4. 30 days

Objective Question 24. Which of the following statements is correct regarding the performance security
I. It should be for an amount of five to ten percent of the value of the contract.
II. Performance Security may be furnished in the form of an Account Payee Demand Draft.
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 25. Rule 210 of the GFR 2017 talks about………
1. Identification of likely contractors
2. Preparation of Tender enquiry
3. Receipt of goods and materials from private suppliers
4. Custody of goods and materials

Objective Question 26. A physical verification of all the consumable goods and materials should be undertaken
at least……..
1. Once in a year
2. Twice in a year
3. Thrice in a year
4. Once in two years.

Objective Question 27. Separate accounts shall be kept for library books in the form………
1. GFR 21
2. GFR 19
3. GFR 23
4. GFR 18

Objective Question 28. RFP is the document to be used by the Ministry/Department for obtaining offers from
the consultants for the required service. What is the expanded form of RFP?
1. Reference of procurement
2. Request for procurement
3. Reference for proposal
4. Request for proposal

Objective Question 29. With respect to the procurement of consultancy services, the weightage of the technical
parameters i.e. non-financial parameters in no case should exceed…………….
1. 90 percent
2. 80 percent
3. 70
4. 60

Objective Question 30. If the received material successfully passes the quantity and quality checks, accounting
of material received shall be on the basis of the GRIR. What is the expanded form of GRIR?
1. Goods Receipt and Integral Report
2. Goods Receipt and Inspection Report
3. Goods Remit and Inspection Report
4. Goods Receipt and Investigative Report

Objective Question 31. Which chapter of the GFR 2017 contains the general rules applicable to all Ministries
or Departments, regarding procurement of goods required for use in the public service?
1. Chapter 6
2. 3
3. 4
4. 7

Objective Question 32. Ministry of Micro, Small and Medium Enterprises (MSME) have notified procurement
policy under which section of the Micro, Small and Medium Enterprises Development Act, 2006?
1. Section 13
 2. Section 11
3. Section 17
4. Section 15

Objective Question 33. Which of the following is NOT one of the Five R’s of procurement?
1. Right price
2. Right source
3. Right quality
4. Right bid

Objective Question 34. Financial year of the Government shall commence on the …… of each year.
1. 1st April
2. 1st June
3. 1st March
4. 1st July

Objective Question 35. Which rule of the GFR 2017 contains the general principles to Delegation of Financial
Powers?
1. Rule 23
2. Rule 22
3. Rule 24
4. Rule 27

Objective Question 36. Which of the following statements is correct with respect to the modification to
bidding document?
I. Modification or clarification should be done in the same manner as the publication or communication of the
initial bidding document was made
II. It can be done any time without any time limit.
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 37. Which of the following is a mode of procurement that can be used in public
procurement?
I. Procurements without calling tenders
II. Nomination Basis tenders
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 38. As per rule 33(1) of the GFR 2017, petty losses of what value need not be reported?
1. Less than five thousand rupees
2. Less than ten thousand rupees
3. Less than twenty thousand rupees
4. Less than two thousand rupees
 Objective Question 39. Which article in the Indian Constitution has implication for Public Procurement?
1. Article 19
2. Article 22
3. Article 27
4. Article 17

Objective Question 40. As per Rule 20 of the GFR 2017, all financial sanctions and orders issued by a
competent authority shall be communicated to………….
I. Audit officer
II. Accounts officer
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 41. Expenditure from public money should not be incurred for the benefit of a particular
person or a section of the people, unless………
I. A claim for the amount could be enforced in a Court of Law
II. The expenditure is in pursuance of a recognized policy or custom
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 42. Which of the following statements is correct regarding Government e-Market place
(GeM)?
I. The Procurement of Goods and Services by Ministries or Departments will be mandatory for Goods or services
available on GeM.
II. The procuring authorities will certify the reasonability of rates.
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 43. As per Rule 154 of the GFR 2017, up to what value may the purchase of goods be
made without inviting quotations or bids?
1. Rs. 25000
2. Rs. 35000
3. Rs. 30000
4. Rs. 15000

Objective Question 44. The Central Government has reserved which of the following items for exclusive
purchase from Khadi and Village Industries Commission (KVIC)?
I. All items of hand-spun textiles
II. All items of handloom textiles excluding Barrack Blankets
1. Only I
2. Only II
3. Both I and II
 4. Neither I nor II

Objective Question 45. ………………………. Means any Ministry or Department of the Central Government
or a unit thereof or its attached or subordinate office to which powers of procurement have been delegated.
1. Procurement delegate
2. Procurement entity
3. Procurement authority
4. Procurement contractor

Objective Question 46. Rule 147 of the GFR 2017 states………….

1. Powers of procurement of goods
2. Procurement of goods required on mobilization
3. Debarment from bidding
4. Registration of Suppliers

Objective Question 47. Form GFR 23 deals with…………….

1. Statement of proposals for pre-budget discussions
2. Register of Grants to be maintained by the sanctioning Authority
3. Fidelity Guarantee Policy
4. Stock Register of consumables such as Stationery, Chemicals, Spare parts etc.

Objective Question 48. In which of the following cases, late bid (i.e. bids received after the specified date and
time for receipt of bids) should NOT be considered?
I. Limited Tender Enquiry
II. Advertised tender enquiry
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 49. The Term “Goods” used in the GFR 2017 includes which of the following?
I. Livestock
II. Railway rolling stock
III. Medicines
1. I and II
2. II and III
3. I, II and III
4. I and III

Objective Question 50. Which rule of the GFR 2017 asks to enter into maintenance contract(s) with the
supplier of the goods or with any other competent firm?
1. Rule 169
2. Rule 170
3. Rule 171
4. Rule 172
 Objective Question 51. Which of the following statements is correct regarding Electronic Reverse Auction?
I. The procuring entity shall solicit bids through an invitation
II. It is an online real-time purchasing technique
1. Only I
2. Only II
3. Both I and II
4. Neither I nor II

Objective Question 52. The main principles according to which the accounts of the Government of India shall
be maintained are contained in Government Accounting Rules,……………….
1. 1996
2. 1994
3. 1992
4. 1990

Objective Question 53. Rule 148 of the GFR 2017 states the principles related to.
1. Procurement of goods required on mobilization
2. Rate contract
3. Fundamental principles of public buying
4. Procedure for settlement on inter-departmental adjustments.

Objective Question 54. A procuring entity may debar a bidder or any of its successors, from participating in
any procurement process undertaken by it, for a period not exceeding.
1. Fifteen Months
2. Six months
3. Two years
4. One year

Objective Question 55. Which rule of the GFR 2017 talks about efficiency, economy and accountability in
Public Procurement System?
1. Rule 174
2. Rule 176
3. Rule 177
4. Rule 178

Objective Question 56. Under which Rule, the definition of term "Goods" includes works and services?
A1 : Rule 142
A2 : Rule 143-(Correct Alternative)
A3 : Rule 144
A4 : Rule 141
Objective Question 57. What are the fundamental principles of public buying that provide?
A1 : Fair and equitable treatment of suppliers and promotion of competition in public procurement-(Correct
Alternative)
A2 : Fair and challengeable competition among suppliers in public procurement
A3 : Comfortable environment to suppliers in public procurement
A4 : Congenial atmosphere among suppliers in public procurement
Objective Question 58. What are the requisites of the buyer for procurements up to ₹ 25,000/- through any of
the available suppliers on the GeM?
A1 : Quality, Specification and Delivery period-(Correct Alternative)
A2 : Quality, Specification and Price
A3 : Period of Supply, Terms and Conditions
A4 : Product Specifications, Time Period and Price

Objective Question 59. Within how many days the annual plan for procurement of Goods and Services shall
be project on GeM portal by the Ministries/Departments of Government?
A1 : Within 30 days of approval of Budget by Parliament-(Correct Alternative)
A2 : Within 60 days of approval of Budget by Parliament
A3 : Within 15days of approval of Budget by Parliament
A4 : No time limit for procurement

Objective Question 60. Registered suppliers are prima facie eligible for consideration for procurement of
goods through what enquiry?
A1 : Advertised Tender Enquiry
A2 : Two stage bidding
A3 : Limited Tender Enquiry-(Correct Alternative)
A4 : Single Tender Enquiry

Objective Question 61. What are the three core elements of Government e-Market place (GeM)?
A1 : Competitiveness, Convenience, Accountability
A2 : Openness, Fairness, Inclusiveness-(Correct Alternative)
A3 : Business, User-friendliness, Viability transactions
A4 : Common platform, Viability of prices, Selectiveness

Objective Question 62. Under which section and act, the Government e-Marketplace Special Purpose Vehicle
(GeM SPV) was incorporated?

A1 : Section 8 of Companies Act, 2013-(Correct Alternative) 8 A2 : Section 8(A) of Companies Act, 2013
A3 : Section 9 of Companies Act, 2013
A4 : Section 10 of Companies Act, 2013

Objective Question 63. What is the meaning of Bundling process in Government e-Market Place(GeM)?
A1 : It is a process of buying multiple goods on a single order
A2 : It is a process of buying goods along with related services-(Correct Alternative)
A3 : It is a process of selling multiple goods on Multiple orders
A4 : It is the process of selling goods of low quality at a high price

Objective Question 64. What is the Bid Security (EMD) percentage range of the estimated value of goods to
be procured?
A1 : Between two to three percent
A2 : Between two to four percent
A3 : Between two to six percent
A4 : Between two to five percent-(Correct Alternative)
Objective Question 65. What is the validity period of Performance Security beyond the date of completion of
all contractual obligations of the supplier including warranty obligations?
A1 : 60 days-(Correct Alternative)
A2 : 50 days
A3 : 75 days
A4 : 90 days

Objective Question 66. What are the three key issues to be ensured in Public Procurement System?
A1 : Effectiveness, Economy and Accountability
A2 : Effectiveness, Efficiency and Accountability
A3 : Efficiency, Economy and Accountability-(Correct Alternative)
A4 : Efficiency, Economy and effectiveness

Objective Question 67. Which Rule of GFRs 2017 deals with hiring out of Assets?
A1 : Rule 212-(Correct Alternative)
A2 : Rule 201
A3 : Rule 221
A4 : Rule 220

Objective Question68. Which rules provide powers to write off of losses in the Government?
A1 : Receipt and Payment Rules 1983
A2 : Government Accounting Rules 1990
A3 : Delegation of Fiscal Power Rules 1978
A4 : Delegation of Financial Power Rules 1978-(Correct Alternative)

Objective Question 69. What is the amendment made to Rule 147-Powers for procurement of goods of GFRs
2017?
A1 : The Ministries were delegated powers to procure goods that are available on GeM.
A2 : The Ministries/ Departments have been delegated full powers to procure goods that are not available on
GeM portal.-(Correct Alternative)
A3 : The Ministries / Departments were delegated powers to procure goods from DGS&D only
A4 : The Ministries / Departments were delegated powers to buy goods not available on GeM and DGS&D

Objective Question 70. What is an amendment to Rule 155-Purchase of Goods by Purchase Committee GFRs
2017
A1 : Though the items available on GeM, on the recommendations of Local Purchase committee, the goods
costing above ₹ 25,000 and upto 2,50,000 may be purchased.
A2 : Purchase of items costing above ₹ 25,000 and upto ₹ 2,50,000 may be made on the recommendations of
local purchase committee
A3 : Items not available on GeM portal, purchase of goods costing above ₹ 25,000 and upto ₹ 2,50,000 may be
made on the recommendations of Local Purchase Committee-(Correct Alternative)
A4 : Purchase of items costing above ₹ 50,000 and upto ₹ 2,50,000 may be made on the recommendations of
the local purchase committee ₹ 50,000
Objective Question 71. Under which Rule of GFRs 2017 a bidder may be debarred from bidding in case he is
convicted under Prevention of Corruption Act 1988 and Indian Penal Code or any other related law in force?
A1 : Rule 150
A2 : Rule 151-(Correct Alternative)
A3 : Rule 152
A4 : Rule 153 1.0 0.25

Objective Question 72. What is the earlier name of Government e-Market Place(GeM) in GFRs 2017?
A1 : Directorate General of Supplies & Disposals-(Correct Alternative)
A2 : Director General of Supplies and Disposals
A3 : Directorate General of Stores and Disposals
A4 : Directorate General Supplies and Distribution

Objective Question 73. What is GFR 2017?

A1 : Government Financial Rules 2017
A2 : General Financial Rules 2005
A3 : General Financial Rules 2017-(Correct Alternative)
A4 : Government Fundamental Rules 2017

Objective Question 74. Under which Rule of GFRs 2017, the fundamental principles of public procurement
was laid down?
A1 : Rule 141
A2 : Rule 144-(Correct Alternative)
A3 : Rule 149
A4 : Rule 145

Objective Question.75. Which of the following is not true about GeM?

1. 22 banks have enabled GeM Pool Account.
2. Delivery period up to 365 days and up to 6 years with approval.
3. Buyers can now select bid duration between 3 & 45 days.
Ans 1. 3 Only
2. 1 Only
3. 1 & 2 Only
4. 2 & 3 Only

Objective Question.76. GeM upholds the principles of which article of the Constitution of India by promoting
inclusivity?
Ans 1. Article 19
2. Article 21
3. Article 12
4. Article 14

Objective Question.77. Recently GeM has integrated with which of the following for facilitating the online
booking of the consignment to be shipped to any pin code in the country?
Ans 1. India Post
2. DHL
3. Gati
4. Safexpress
Objective Question 78. Which of the following is NOT a primary feature of the GeM platform?
Ans 1. Product categorization for streamlines procurement.
2. In-built module for contract management.
3. Analytics for informed decision making.
4. A platform to raise public grievances about any product.

Objective Question.79. Which of the following is NOT a benefit of using the Government e-Marketplace
(GeM)?
Ans 1. Access to a wider vendor base
2. Transparent procurement process
3. Guaranteed long-term contracts for sellers
4. Reduction in procurement cycle time

Objective Question.80. The Government e-Marketplace (GeM) was initiated by which of the following?
Ans 1. The Ministry of Electronics and Information Technology
2. The Ministry of Commerce and Industry
3. The Ministry of Micro, Small and Medium Enterprises
4. The Ministry of Finance

Objective Question.81. Which of these is/are promoted by GeM?

1. Startup Runway 2.0
2. The Saras Collection
3. One-Stop Centre Scheme
Ans 1. 2 Only
2. 2 & 3 Only
3. 1, 2 & 3
4. 1 & 2 Only

Objective Question.82. On the GeM platform, the 'Direct Purchase' method can be used for products of value
up to how much without needing to go through the bid process?
Ans 1. Up to INR 1,00,000
2. Up to INR 25,000
3. Up to INR 50,000
4. Up to INR 5,00,000

Objective Question.83. Which of the following statements about GeM is accurate?

Ans 1. GeM is a closed platform accessible only to Indian government officials.
2. GeM operates under the Directorate General of Supplies and Disposals (DGS&D).
3. GeM is an initiative to boost the manufacturing sector in India by excluding service providers.
4. GeM allows only public sector enterprises to list their products and services.

Objective Question.84. Which of these is an initiative that seeks to showcase products made by women
entrepreneurs and women self-help groups by aligning them with opportunities to sell their products to various
government ministries, departments and institutions?
Ans 1. Ujjawala
2. Nirbhaya
3. Mahila E-Haat
4. Womaniya

Objective Question 85. Under which Rule, the definition of term "Goods" includes works and services?
A1 : Rule 142
A2 : Rule 143-(Correct Alternative)
A3 : Rule 144
A4 : Rule 141

Objective Question 86. What are the fundamental principles of public buying that provide?
A1 : Fair and equitable treatment of suppliers and promotion of competition in public procurement-(Correct
Alternative)
A2 : Fair and challengeable competition among suppliers in public procurement
A3 : Comfortable environment to suppliers in public procurement
A4 : Congenial atmosphere among suppliers in public procurement

Objective Question 87. . What are the requisites of the buyer for procurements up to ₹ 25,000/- through any of
the available suppliers on the GeM?
A1 : Quality, Specification and Delivery period-(Correct Alternative)
A2 : Quality, Specification and Price
A3 : Period of Supply, Terms and Conditions
A4 : Product Specifications, Time Period and Price

Objective Question 88. Within how many days the annual plan for procurement of Goods and Services shall
be project on GeM portal by the Ministries/Departments of Government?
A1 : Within 30 days of approval of Budget by Parliament-(Correct Alternative)
A2 : Within 60 days of approval of Budget by Parliament
A3 : Within 15days of approval of Budget by Parliament
A4 : No time limit for procurement

Objective Question 89. Registered suppliers are prima facie eligible for consideration for procurement of
goods through what enquiry?
A1 : Advertised Tender Enquiry
A2 : Two stage bidding
A3 : Limited Tender Enquiry-(Correct Alternative)
A4 : Single Tender Enquiry

Objective Question 90. What are the three core elements of Government e-Market place (GeM)?
A1 : Competitiveness, Convenience, Accountability
A2 : Openness, Fairness, Inclusiveness-(Correct Alternative)
A3 : Business, User-friendliness, Viability transactions
A4 : Common platform, Viability of prices, Selectiveness
Objective Question 91. Under which section and act, the Government e-Marketplace Special Purpose Vehicle
(GeM SPV) was incorporated? िकया गया था?
A1 : Section 8 of Companies Act, 2013-(Correct Alternative)
A2 : Section 8(A) of Companies Act, 2013
A3 : Section 9 of Companies Act, 2013
A4 : Section 10 of Companies Act, 2013

Objective Question 92. What is the meaning of Bundling process in Government e-Market Place(GeM)?
A1 : It is a process of buying multiple goods on a single order
A2 : It is a process of buying goods along with related services-(Correct Alternative)
A3 : It is a process of selling multiple goods on Multiple orders
A4 : It is the process of selling goods of low quality at a high price

Objective Question 93. What is the Bid Security (EMD) percentage range of the estimated value of goods to
be procured?
A1 : Between two to three percent
A2 : Between two to four percent
A3 : Between two to six percent
A4 : Between two to five percent-(Correct Alternative)

Objective Question 94. What is the validity period of Performance Security beyond the date of completion of
all contractual obligations of the supplier including warranty obligations?
A1 : 60 days-(Correct Alternative)
A2 : 50 days 50
A3 : 75 days 75
A4 : 90 days 90

Objective Question 95. What are the three key issues to be ensured in Public Procurement System?
A1 : Effectiveness, Economy and Accountability
A2 : Effectiveness, Efficiency and Accountability
A3 : Efficiency, Economy and Accountability-(Correct Alternative)
A4 : Efficiency, Economy and effectiveness

Objective Question 96. Which Rule of GFRs 2017 deals with hiring out of Assets?
A1 : Rule 212-(Correct Alternative)
A2 : Rule 201
A3 : Rule 221
A4 : Rule 220

Objective Question 97. Which rules provide powers to write off of losses in the Government?
A1 : Receipt and Payment Rules 1983
A2 : Government Accounting Rules 1990
A3 : Delegation of Fiscal Power Rules 1978
A4 : Delegation of Financial Power Rules 1978-(Correct Alternative)
Objective Question 98. What is the amendment made to Rule 147-Powers for procurement of goods of GFRs
2017?
A1 : The Ministries were delegated powers to procure goods that are available on GeM.
A2 : The Ministries/ Departments have been delegated full powers to procure goods that are not available on
GeM portal.-(Correct Alternative)
A3 : The Ministries / Departments were delegated powers to procure goods from DGS&D only
A4 : The Ministries / Departments were delegated powers to buy goods not available on GeM and DGS&D

Objective Question 99. What is an amendment to Rule 155-Purchase of Goods by Purchase Committee GFRs
2017
A1 : Though the items available on GeM, on the recommendations of Local Purchase committee, the goods
costing above ₹ 25,000 and upto 2,50,000 may be purchased.
A2 : Purchase of items costing above ₹ 25,000 and upto ₹ 2,50,000 may be made on the recommendations of
local purchase committee
A3 : Items not available on GeM portal, purchase of goods costing above ₹ 25,000 and upto ₹ 2,50,000 may be
made on the recommendations of Local Purchase Committee-(Correct Alternative)
A4 : Purchase of items costing above ₹ 50,000 and upto ₹ 2,50,000 may be made on the recommendations of
the local purchase committee

Objective Question 100. Under which Rule of GFRs 2017 a bidder may be debarred from bidding in case he is
convicted under Prevention of Corruption Act 1988 and Indian Penal Code or any other related law in force?
A1 : Rule 150
A2 : Rule 151-(Correct Alternative)
A3 : Rule 152
A4 : Rule 153 1.0 0.25

Objective Question 101. What is the earlier name of Government e-Market Place(GeM) in GFRs 2017?
A1 : Directorate General of Supplies & Disposals-(Correct Alternative)
A2 : Director General of Supplies and Disposals
A3 : Directorate General of Stores and Disposals
A4 : Directorate General Supplies and Distribution

Objective Question 102. What is GFR 2017?

A1 : Government Financial Rules 2017
A2 : General Financial Rules 2005
A3 : General Financial Rules 2017-(Correct Alternative)
A4 : Government Fundamental Rules 2017

Objective Question 103. Under which Rule of GFRs 2017, the fundamental principles of public procurement
was laid down?
A1 : Rule 141
A2 : Rule 144-(Correct Alternative)
A3 : Rule 149
A4 : Rule 145
Objective Question 104. The entire process of procurement is designed to achieve such a right balance. The
word ‘right’ is used in what sense?
A1 : Optimal Balance-(Correct Alternative)
A2 : Minimal Balance
A3 : Desired Balance
A4 : Ideal Balance

Objective Question 105. The financial powers of the Government, which have not been delegated to a
subordinate authority, shall vest in the ____________ Ministry.
A1 : Defence Ministry
A2 : Finance Ministry-(Correct Alternative)
A3 : Agriculture Ministry
A4 : Ministry of Electronics and Information Technology

Objective Question 106. What are the financial limits upto which expenditure in respect of additional
investment in an existing undertaking can be met by re-appropriation of savings in a Grant subject to report to
Parliament?
A1 : Above Rs.1.50 Crores but not exceeding Rs.3 Crores
A2 : Above Rs.2.50 Crores but not exceeding Rs.4.50 Crores
A3 : Above Rs.3 Crores but not exceeding Rs.5.50
A4 : Above Rs.2.50 Crores but not exceeding Rs.5 Crores-(Correct Alternative)

Objective Question 107. Identify the nature of receipt as Capital receipt of the Government.
A1 : Interest receipts on loans and Advances of the Government
A2 : Receipts of Central Taxes and Duties and External Aid receipts of the Government
A3 : External Debt of the Government-(Correct Alternative)
A4 : Notional receipts from grant assistance from foreign Governments or International institutions

Objective Question 108. What is the financial limit which requires prior approval of the Parliament for write
off of Government loan?
A1 : Amount above Rs. 50,000 (individual cases)
A2 : Amount above Rs.1 Lakh (individual cases)-(Correct Alternative)
A3 : Amount above Rs. 1,50,000 (individual cases)
A4 : Amount above Rs. 2 Lakhs (individual cases)

Objective Question 109. Who is the custodian of the Contingency Fund of India?
A1 : On behalf of the President of India, the Secretary to the Government, Ministry of Finance, Department of
Economic Affairs.-(Correct Alternative)
A2 : On behalf of the President of India, the Principal Secretary to the Government, Ministry of Finance,
Department of Expenditure
A3 : On behalf of the President of India, the Personal Secretary of President of India.
A4 : On behalf of the President of India, the Secretary to the Government, Ministry of Finance, Department of
Revenue.

Objective Question 110. Who administers the works classified under Grant for Civil Works of Government of
India?
A1 : State Public Works Department
A2 : Ministry of Housing and Urban Affairs
A3 : Central Public Works Department-(Correct Alternative)
A4 : Ministry of Public Works

Objective Question 111. Which of the Rules regulated to accord administrative approval, sanction of
expenditure and re-appropriation of funds for Works?
A1 : Delegation of Financial Power Rules 1978-(Correct Alternative)
A2 : Delegation of Financial Power Rules 1980
A3 : Delegation of Financial Power Rules 1979
A4 : Delegation of Financial Power Rules 1987

Objective Question 112. The Ministries/Departments shall work out their procurement of Good and Services
requirements on either OPEX model or CAPEX model. What do they mean?
A1 : OPEX is Ongoing Expenditure and CAPEX is Carryover Expenditure
A2 : OPEX is Operating Expenditure and CAPEX is Capital Expenditure-(Correct Alternative)
A3 : OPEX is Orientation Expenditure and CAPEX is Contractual Expenditure
A4 : OPEX is Operational Expenditure and CAPEX is Corporate Expenditure

Objective Question 113. Which Rule does not include the direct engagement of a retired Government servant
as Consultancy Service?
A1 : Rule 178
A2 : Rule 179
A3 : Rule 176
A4 : Rule 177-(Correct Alternative)

Objective Question 114. As per the General Principles of Contract, the contract document where necessary,
shall be executed within how many days after the issue of letter of acceptance.
A1 : 15 days
A2 : 21 days-(Correct Alternative)
A3 : 30 days
A4 : 20 days

Objective Question 115. What is "appropriation" under General Financial Rules 2017?
A1 : the assignment, to meet un-specified expenditure, of funds included in a primary unit of appropriation;
A2 : the assignment, to meet specified expenditure, of funds included in a primary unit of appropriation;-
(Correct Alternative)
A3 : the assignment, to meet unforeseen expenditure, of funds included in a primary unit of appropriation;
A4 : the assignment, to meet avoidable expenditure, of funds included in a primary unit of appropriation;

Objective Question 116. What constitutes the “Government Account”?

A1 : Account relating to the Consolidated Fund, the Contingency Fund and the Provident Fund Account.
A2 : Account relating to the Consolidated Fund, the Contingency Fund and the General Fund Account.
A3 : Account relating to the Consolidated Fund, the Contingency Fund and the Public Account.-(Correct
Alternative)
A4 : Account relating to the Consolidated Fund, the Contingency Fund and the Secret Fund Account.
Objective Question 117. “Recurring expenditure” means: "
A1 : The expenditure incurred for private expenditure of the Head of the Department
A2 : The expenditure incurred for public purpose of the Head of the Department
A3 : The expenditure incurred for on the personal tours of the Head of the Department
A4 : The expenditure which is incurred at periodical intervals for the same purpose. -(Correct Alternative)

Objective Question 118. Who is the competent authority to approve Departmental Regulation of financial
character?
A1 : Comptroller and Auditor General of India
A2 : Controller General of Accounts
A3 : Reserve Bank of India
A4 : Ministry of Finance -(Correct Alternative)

Objective Question 119. Who is the competent authority to recover rent of a rentable building belonging to
central Government located in Mumbai, whose maintenance is entrusted by the Department of Agriculture to
the Director General of Agriculture, who is the Head of the Department?
A1 : Central Public Works Department
A2 : Director General of Agriculture i.e., HoD-(Correct Alternative)
A3 : Brihan Mumbai Municipal Corporation
A4 : Governor of Maharashtra

Objective Question 120. Secretary, Ministry of Agriculture, Government of India altered the classification of
Demands for Grants in the Form of Annual Financial statements, on the ground that he is competent being
Administrative Head of the Department.
A1 : Action of the Secretary is in order and the ground is correct.
A2 : Approval of Finance Ministry is required.-(Correct Alternative)
A3 : Approval of The Controller General of Accounts is required.
A4 : Approval of the President of India is required.

Objective Question 121. How an expenditure on a new service not provided in Budget shall be met when there
is no sufficient time to follow due process of approval?
A1 : An advance from the Contingency Fund can be taken. -(Correct Alternative)
A2 : An advance from the Reserve Bank of India can be taken
A3 : An advance from the World Bank can be obtained.
A4 : An advance from IMF can be obtained.

Objective Question 122. What system is available in Government accounts for sanction, preparation, bill
processing, payment and receipt management, direct benefit transfer, fund flow management and financial
reporting using Information Technology?
A1 : Public Financial Management System (PFMS)-(Correct Alternative)
A2 : Treasury accounting
A3 : PAO system
A4 : Central Accounting Section
Objective Question 123. What is mechanism available for transfer of benefits directly to beneficiaries under
various Government Schemes and Programmes using Information and Communication Technology (ICT) in
Government Accounting?
A1 : Direct Benefit Transfer.-(Correct Alternative)
A2 : Direct Beneficiary Transfer.
A3 : Direct Beneficiary Fund transfer.
A4 : Direct Transfer to Beneficiary.

Objective Question 124. Which account is maintained by the Designated Officer to credit receipts into and
effect withdrawals directly from the account, subject to an overall check being exercised by the bank?
A1 : Personal Deposit Account-(Correct Alternative)
A2 : Public Deposit Account
A3 : Postal Deposit Account
A4 : Primary Deposit Account.

Objective Question 125. The term qualified __________ means any purchase of qualified tender bond
pursuant to a tender right if such purchase occurs pursuant to the terms of the bond, the terms of the bond
require that best efforts be used to remarket the bond, and the bond is remarketed no later than 30 days after the
date of such purchase.
A1 : Tender purchase-(Correct Alternative)
A2 : Forward Purchase
A3 : Rate contract
A4 : Pre-Purchase

Objective Question 126. In __________ the organization will enter into an agreement with its suppliers to
receive items for a required quantity at a particular rate over a period of time.
A1 : Blanket Ordering System-(Correct Alternative)
A2 : Zero Stock
A3 : Forward Buying
A4 : Tender Buying

Objective Question 127. __________ purchase system is in-line with using the just-in-time manufacturing
system.
A1 : Blanket Ordering System
A2 : Zero Stock-(Correct Alternative)
A3 : Forward Buying
A4 : Tender Buying

Objective Question 128. __________ is used in public sectors and government departments and the
organizations can place orders straightway with such firms without going through the lengthy procedure of
purchasing.
A1 : Blanket Ordering System
A2 : Rate contract-(Correct Alternative)
A3 : Forward Buying
A4 : Tender Buying
Objective Question 129. Any proposal for the purchase of materials from abroad is to be scrutinized by the
__________.
A1 : DGS&D-(Correct Alternative)
A2 : DGT&D
A3 : DGT&S
A4 : DGM&D

Objective Question 130. DGS&D stands for __________.

A1 : Directorate General of Supplies and Disposals-(Correct Alternative)
A2 : Directorate Government of Supplies and Disposals
A3 : Directorate Growth of Supplies and Disposal
A4 : Department of Government Supplies and Disposals