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Slef Check

The document contains a self-check test with 10 multiple choice questions about purchasing and inventory management concepts. The questions cover topics like purchase requisitions, purchase orders, economic order quantity, functions of the purchasing department, and comparing costs of different order quantities.

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Buff Falo
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34 views2 pages

Slef Check

The document contains a self-check test with 10 multiple choice questions about purchasing and inventory management concepts. The questions cover topics like purchase requisitions, purchase orders, economic order quantity, functions of the purchasing department, and comparing costs of different order quantities.

Uploaded by

Buff Falo
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
Download as docx, pdf, or txt
Download as docx, pdf, or txt
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SELF-CHECK TEST:

 Multiple Choice:
1. In a well-controlled material system, the purchasing agent performs the following activities
except the
a. Placing of purchase orders with supplies
b. Receiving the purchase requisitions
c. Approving and checking of invoices
d. Preparation of purchase order.

2. The purchase requisition is a document used to


a. Initiate the return of merchandise to the vendor
b. Inform the purchasing agent a need for materials
c. Initiate payment for materials ordered
d. Inform the purchasing department of a receipt of materials

3. The purchase order


a. Is the list of materials requirements for each step in the production cycle
b. Contracts for quantities to be delivered
c. Informs the purchasing agent of the quantity and kind of materials needed
d. Authorizes the storeroom to deliver materials to a given department
4. The purchasing department performs all of the following functions, except
a. Compares quantities received with the suppliers’ packing list
b. Receives purchase requisitions for materials
c. Keeps informed concerning sources of supply, prices, and delivery schedules
d. Prepares and places purchase orders.

5. The factor that need not be considered when calculating an inventory economic order
quantity (EOQ) is a. Safety stock level
b. Annual stock level
c. Annual sales of a product
d. Order-placing costs

6. A company has been ordering more than the economic order quantity. This would result in
a. More frequent order points
b. Carrying costs greater than order costs
c. Equal safety stock costs and carrying costs
d. Carrying costs less than order costs
7. The materials requisition
a. Authorizes the storeroom to deliver types and quantities of materials to a
given department
b. Is the list of material requirements for each step in the production cycle
c. Informs the purchasing agent of the quantity and type of materials needed
d. Contracts for quantities to be delivered

8. The purchase requisition may originate from all of the following, except
a. A storeroom clerk
b. A materials record clerk
c. A receiving department clerk
d. Other department employee who needs materials f special nature

9. The receiving department does all of the following except


a. Unloads and unpacks incoming materials
b. Keeps informed concerning sources of supply, prices and delivery schedules
c. Matches materials received with descriptions on purchase orders
d. Arranges for inspection, when necessary

10. Charr Company has correctly computed its EOQ as 500 units. However, management
would order in quantities of P600 units. How will Charr’s total annual purchase order cost
and total annual carrying cost for an order quantity of 600 units compare to the respective
amounts for an order quantity of 500 units?
a. Lower purchase order cost and higher carrying cost
b. Higher purchase order cost and lower carrying cost
c. Higher purchase order cost and higher carrying cost
d. Lower purchase order cost and lower carrying cost

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