material a

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Material Management

Select The Blank

Question Inspection methods analyze ________.Correct Answer Degree of inspection

Your Answer Quality of material

Multiple Choice Single Answer

Question In Fixed-Order quantity system, cycle time of consumption should be :-

Correct Answer More than lead time

Your Answer Less than lead-time

Select The BlankQuestion In the ________ , the composition of code is in three groups of digits that

are separated by hyphens, the hyphens serves to break the code into easy to handle group

of digits.

Correct Answer Kodak system

Your Answer Kodak system


Question A buyer gives wrong idea to his supplier about his requirements or show a

fictitious figure to get some price discount is called as :-

Correct Answer Misrepresentation of factsYour Answer Misrepresentation of facts


Question JIT is an :-

Correct Answer Inventory reduction technique

Your Answer Just-in-time


Question Issues to top up supply to pre-fixed levels of items are :-Correct Answer Imprest issues

Your Answer Imprest issues

True/False

Question Two bin system is better as compared to perpetual inventory system.

Correct Answer False

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Your Answer True

Multiple Choice Multiple Answer

Question Annual total cost changes :-

Correct Answer If stock turnover rate changes , If quantity changesYour Answer If stock turnover rate changes , If procurement cost changes , If

set-up cost changes

True/False

Question Functionally critical parts require to be covered under cent per cent

inspection

Correct Answer True

Your Answer False

Select The Blank

Question GRR are sent from ________.

Correct Answer Stores Dept.

Your Answer Stores Dept.


Question Competitive price information must be treated as confidential and should

not be disclosed to the bidders with an intention of allowing them to rebid is :-

Correct Answer Improprieties of bids

Your Answer Price disclosure

Select The Blank

Question Good ________ relations are necessary for effective materials planning as

every department is involved in materials planning because each department requires one

item or other another.

Correct Answer Departmental

Your Answer Departmental


Question The following are the actions would help to improve effectiveness of

materials planning :-

Correct Answer Accurate forecasting , Computerization , Shorter materials plan

period

Your Answer Accurate forecasting , Computerization , Shorter materials plan

period

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Match The Following

Question Correct Answer Your Answer

JE Journal Entries Journal Entries

PO Purchase order Purchase order

GRN Goods receipt note Goods receipt note

DN Discrepancy note. Discrepancy note.

True/False

Question Cancellation of orders on flimsy ground is unethical.

Correct Answer TrueYour Answer True

Select The Blank

Question Standardized containers eliminates ________

Correct Answer Transit damage

Your Answer Transit damage


Question Purchase order offers acceptance and have been clearly laid down in :-

Correct Answer Indian Contract act 1872

Your Answer Indian Contract act 1872


Question For the inspection of Stationery which department is responsible?

Correct Answer Stores

Your Answer Stores

Match The Following


FAS (4-2) Sale at the port of destination Sale at port of export

FOB (1-1) Sale is made on FOB vessel Sale is made on FOB vessel

CIF (2-4) Sale is made at port of destination Sale at the port of destination

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Correct Answer Bonus

Your Answer Penalty for delay

True/False

Question Single tender system is used when there is only one supplier of the item.Correct Answer True

Your Answer True


Question Following are benefits of scientific stoke management :-

Correct Answer Reduction in downtime by efficient issues , Inventory control ,

Very less time required to identify & issue material

Your Answer Reduction in downtime by efficient issues , Inventory control ,


True/False

Question Stores is the "Safe Custody" for keeping materials

Correct Answer True

Your Answer True

True/False

Question Value analysis is the cost reduction technique.

Correct Answer True

Your Answer True

True/False

Question Codification avoids confusion and doubt caused by long description of

items.

Correct Answer True

Your Answer True


Question Complaints concerning should be made in such a way that negative

reactions are avoided such as :-

Correct Answer Delivery failures , Rejection , Shortages

Your Answer Delivery failures , Rejection , Shortages

True/False

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Question A firm engaged in custom-built-product, is usually plagued with obsolete

material.

Correct Answer True

Your Answer True

Select The Blank

Question ________ refers to the procurement of the requirements of all departments

of the firm by a central purchase organization.

Correct Answer Centralisation

Your Answer Centralisation


Question Conventional machine set-up time includes :-

Correct Answer Tool replenishment , First piece inspection

Your Answer Tool replenishment , First piece inspection , Set-up


Question Stock-out is due to :-

Correct Answer Unusual high demands , Delay in deliveries

Your Answer Unusual high demands , Delay in deliveries , Machine break-down

True/False

Question Negotiation should end up with an unhappy supplier.


Your Answer False

Select The Blank

Question Systematic, formal and continuous analysis of all factors affect ________

management function is known as Materials research.

Correct Answer Materials

Your Answer Materials

True/False

Question Since stock-taking is a check on storekeeper, it should not be conducted

by him.


Your Answer False


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Question Salient features of the working of the price panel are as under :-

Correct Answer Usage value above which the panel is to approve of the price is

specified. , Vendor development department is required to give cost break up to the

secretary of the price panel , Members of the panel meet to scrutinize and discuss the cost

aspects.

Your Answer Usage value above which the panel is to approve of the price isspecified. , Vendor development department is required to give cost break up to the


aspects.


Question Application for an import license must be signed from :-

Correct Answer Proprietor , Partner of firm , Person duly authorized by board of

directors of company

Your Answer Proprietor , Partner of firm , Person duly authorized by board of


True/False

Question Manual inspection is economical when volume of output is small.

Correct Answer True

Your Answer True


Question For large organizations where product is made up of assemblies of

manufactured components raw material store is subdivided into :-

Correct Answer Foundry store , Tool crib , Maintenance store

Your Answer Foundry store , Tool crib , Goods inward store

True/False

Question Post parcel consignments are cleared through customs & clearance is done

through foreign post office.

Correct Answer True

Your Answer True


Question What is the meaning of discharge of contract by novation?

Correct Answer If the parties agree to substitute a new contract in place of existing

one or alter it, original contract is discharged

Your Answer If the parties agree to substitute a new contract in place of existing


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Select The Blank

Question Quantity delivered of goods must be according to the ________.

Correct Answer Terms of contract

Your Answer Terms of contract


Question Which of the following is not the external factor influencing materials

planning?

Correct Answer Corporate objective

Your Answer Corporate objective

Select The BlankQuestion Inspection methods analyze ________.

Correct Answer Degree of inspection

Your Answer Quality of material


Question In Fixed-Order quantity system, cycle time of consumption should be :-

Correct Answer More than lead time

Your Answer Less than lead-time

Select The Blank

Question In the ________ , the composition of code is in three groups of digits that

are separated by hyphens, the hyphens serves to break the code into easy to handle group

of digits.

Correct Answer Kodak system

Your Answer Kodak system


Question A buyer gives wrong idea to his supplier about his requirements or show a

fictitious figure to get some price discount is called as :-

Correct Answer Misrepresentation of facts

Your Answer Misrepresentation of facts


Question JIT is an :-

Correct Answer Inventory reduction technique

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Your Answer Just-in-time


Question Issues to top up supply to pre-fixed levels of items are :-

Correct Answer Imprest issuesYour Answer Imprest issues

True/False

Question Two bin system is better as compared to perpetual inventory system.


Your Answer True


Question Annual total cost changes :-Correct Answer If stock turnover rate changes , If quantity changes

Your Answer If stock turnover rate changes , If procurement cost changes , If

set-up cost changes

True/False

Question Functionally critical parts require to be covered under cent per cent

inspection

Correct Answer True

Your Answer False

Select The Blank

Question GRR are sent from ________.

Correct Answer Stores Dept.

Your Answer Stores Dept.


Question Competitive price information must be treated as confidential and should

not be disclosed to the bidders with an intention of allowing them to rebid is :-

Correct Answer Improprieties of bids

Your Answer Price disclosure

Select The Blank

Question Good ________ relations are necessary for effective materials planning as

every department is involved in materials planning because each department requires one

item or other another.

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Correct Answer Departmental

Your Answer Departmental


Question The following are the actions would help to improve effectiveness ofmaterials planning :-

Correct Answer Accurate forecasting , Computerization , Shorter materials plan

period

Your Answer Accurate forecasting , Computerization , Shorter materials plan

period

Match The Following


JE Journal Entries Journal Entries

PO Purchase order Purchase order

GRN Goods receipt note Goods receipt note

DN Discrepancy note. Discrepancy note.

True/False

Question Cancellation of orders on flimsy ground is unethical.

Correct Answer True

Your Answer True

Select The Blank

Question Standardized containers eliminates ________

Correct Answer Transit damage

Your Answer Transit damage


Question Purchase order offers acceptance and have been clearly laid down in :-

Correct Answer Indian Contract act 1872

Your Answer Indian Contract act 1872


Question For the inspection of Stationery which department is responsible?

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Correct Answer Stores

Your Answer Stores

Match The Following


FAS (4-2) Sale at the port of destination Sale at port of export

FOB (1-1) Sale is made on FOB vessel Sale is made on FOB vessel

CIF (2-4) Sale is made at port of destination Sale at the port of destination

CFR (3-3) Sale at port of export Sale is made at port of destination


Question Reprocessing of Scrap is :-

Correct Answer Reclaiming for re-use

Your Answer Reclaiming for re-use


Question Limit gauges are used to verify :-

Correct Answer Whether the product is within the specification

Your Answer Whether the product is within the specification


Question Which of the following is not the internal factor influencing materials

planning?

Correct Answer International market

Your Answer International market


Question The system should be designed in such a way that it serves the advantages

that are expected to accrue from it, is called as :-

Correct Answer Objective oriented

Your Answer Objective oriented


Question Real creative ideas results :-

Correct Answer When members ventures into impossible areas

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Your Answer When opportunity is given to staff


Question Segregation of scrap means :-

Correct Answer Sorting by type, size, grade etc. , Sorting by grade, weightYour Answer Sorting by type, size, grade etc. , Sorting by grade, weight

Select The Blank

Question ________clause should be inserted in the purchase order of items critical

to project to induce supplier for early completion of the orders.

Correct Answer Bonus

Your Answer Penalty for delay

True/FalseQuestion Single tender system is used when there is only one supplier of the item.

Correct Answer True

Your Answer True


Question Following are benefits of scientific stoke management :-

Correct Answer Reduction in downtime by efficient issues , Inventory control ,


Your Answer Reduction in downtime by efficient issues , Inventory control ,


True/False

Question Stores is the "Safe Custody" for keeping materials

Correct Answer True

Your Answer True

True/False

Question Value analysis is the cost reduction technique.

Correct Answer True

Your Answer True

True/False

Question Codification avoids confusion and doubt caused by long description of

items.

Correct Answer True

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Your Answer True


Question Complaints concerning should be made in such a way that negative

reactions are avoided such as :-Correct Answer Delivery failures , Rejection , Shortages

Your Answer Delivery failures , Rejection , Shortages

True/False

Question A firm engaged in custom-built-product, is usually plagued with obsolete

material.

Correct Answer True

Your Answer True

Select The Blank

Question ________ refers to the procurement of the requirements of all departments

of the firm by a central purchase organization.

Correct Answer Centralisation

Your Answer Centralisation




Your Answer Tool replenishment , First piece inspection , Set-up


Question Stock-out is due to :-

Correct Answer Unusual high demands , Delay in deliveries

Your Answer Unusual high demands , Delay in deliveries , Machine break-down

True/False

Question Negotiation should end up with an unhappy supplier.


Your Answer False

Select The Blank

Question Systematic, formal and continuous analysis of all factors affect ________

management function is known as Materials research.

Correct Answer Materials

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Your Answer Materials

True/False

Question Since stock-taking is a check on storekeeper, it should not be conducted

by him.Correct Answer False

Your Answer False


Question Salient features of the working of the price panel are as under :-

Correct Answer Usage value above which the panel is to approve of the price is

specified. , Vendor development department is required to give cost break up to the


aspects.

Your Answer Usage value above which the panel is to approve of the price isspecified. , Vendor development department is required to give cost break up to the


aspects.


Question Application for an import license must be signed from :-

Correct Answer Proprietor , Partner of firm , Person duly authorized by board of


Your Answer Proprietor , Partner of firm , Person duly authorized by board of


True/False

Question Manual inspection is economical when volume of output is small.

Correct Answer True

Your Answer True


Question For large organizations where product is made up of assemblies of

manufactured components raw material store is subdivided into :-

Correct Answer Foundry store , Tool crib , Maintenance store

Your Answer Foundry store , Tool crib , Goods inward store

True/False

Question Post parcel consignments are cleared through customs & clearance is done

through foreign post office.

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Correct Answer True

Your Answer True


Question What is the meaning of discharge of contract by novation?Correct Answer If the parties agree to substitute a new contract in place of existing


Your Answer If the parties agree to substitute a new contract in place of existing


Select The Blank

Question Quantity delivered of goods must be according to the ________.

Correct Answer Terms of contract

Your Answer Terms of contract


Question Which of the following is not the external factor influencing materials

planning?

Correct Answer Corporate objective

Your Answer Corporate objective


Question Primary duties to be performed by purchase department are :-

Correct Answer Receipts, sorting of purchase indents and determination of method

of buying , Performance evaluation and feedback , Search for suppliers

Your Answer Search for suppliers , Receipts, sorting of purchase indents and

determination of method of buying , Performance evaluation and feedback

True/False

Question Indentor's copy is meant to enable indentor to follow up with the purchase

department.

Correct Answer True

Your Answer True

Select The Blank

Question ________specification are usually flexible and can be altered during

consultation with different manufacturers of the equipment.

Correct Answer Equipment

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Your Answer Equipment


Question Second bin quantity can be qualified by :-

Correct Answer m + L x CYour Answer m + L x C

True/False

Question Continuous stock-taking tends to dislocate the working of store.


Your Answer False


Question Redundant Stock is nothing but :-Correct Answer Worthless for conversion & other use

Your Answer Worthless for conversion & other use


Question The cost incurred in providing adequate insurance cover to the materials in

transit and in storage is

Correct Answer Insurance cost

Your Answer Insurance cost

Select The Blank

Question Set-up cost for manufactured item in own plant is ________.

Correct Answer Very high

Your Answer Very high


Question The buying which is received in staggered lots, each lot at times may

equal EOQ is :-

Correct Answer Contract buying

Your Answer Schedule buying


Question Price of the commodity is conditioned by the forces of supply and demand

is :-

Correct Answer Demand and supply condition

Your Answer Demand and supply condition

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Question The submission of the final offers by the prospective sources is :-

Correct Answer Firm bidding

Your Answer Firm bidding

Select The Blank

Question ________ of the department refers to the placement of the department in

the structure of the company.

Correct Answer Status

Your Answer Size

Select The Blank

Question Paper work cost is ________.Correct Answer Procurement cost

Your Answer Procurement cost

True/False

Question The trade discount is not allowed as a percentage of published price.


Your Answer False


Question What are the different methods of identifying materials?

Correct Answer Tagging , Labeling , Engraving

Your Answer Tagging , Labeling , Engraving


Question Prices of certain commodity may be fixed by the government and thereby

putting a restriction on both buyer and seller is :-

Correct Answer Government restrictions

Your Answer Government restrictions

True/False

Question Multiple sampling is an extension of the double sampling plan.

Correct Answer True

Your Answer True

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Match The Following


Labour management relations Investigating into suppliers capabilities Investigating

into suppliers capabilities

Technical discussions between the representatives of a buyer and supplier Techno

commercial discussion and trial order Techno commercial discussion and trial

order

Follow up with the supplier until sample submission Sample validation Sample

validation

Type of supplier Preliminary selection of the suppliers Preliminary selection of the

suppliers

Select The Blank

Question Review system-optional replenishment is a modification of ________.

Correct Answer Fixed-order interval system

Your Answer Re-order level system


Question Costs involved in materials management are

Correct Answer Basic cost of materials , Government tax and levies , Ordering cost

Your Answer Basic cost of materials , Government tax and levies , Ordering cost

True/False

Question Safety stock forms a fixed portion of inventories.

Correct Answer True

Your Answer True

True/False

Question Maintenance and repair costs in used equipments are relatively higher.

Correct Answer True

Your Answer True


Question What are the areas of control to improve profit

Correct Answer Increase units sold , Increase production , Reducing capital

Your Answer Increase units sold , Increase production , Reducing capital

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Question Main transport documents used by trade are :-

Correct Answer RR , LR

Your Answer RR , LR


Question Quantity based advance license is based on standard of :-

Correct Answer Input-output norms fixed by ALC

Your Answer Input-output norms fixed by ALC

Select The Blank

Question Originating department of daily material receipt report is ________.

Correct Answer Receiving storeYour Answer Purchase department


Question What are the limitations of alpha betical system?

Correct Answer Repetition of alphabets often leads to confusion and wrong

identification , The selection of proper alphabets for each of the items is difficult. , The

codes cannot be amplified which restricts its use to smaller firms

Your Answer Repetition of alphabets often leads to confusion and wrong

identification , The selection of proper alphabets for each of the items is difficult. , The

codes cannot be amplified which restricts its use to smaller firms

True/False

Question Small parcels, Samples, gifts which are received from other countries

provisions of import policy & customs not applied on them.


Your Answer False

Select The Blank

Question Malpractices are ________.

Correct Answer Manipulations by stores staff

Your Answer Common in all stores

True/False

Question The registered firms are required to submit security deposit which is

required from unregistered firms.

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Your Answer False


Question In instantaneous replenishment system :-Correct Answer Item consumption demand rate is constant

Your Answer Item consumption demand rate is constant


Question Store manager has to ensure security :-

Correct Answer Of store buildings , Of stock yards

Your Answer Of store buildings , Of stock yards , Of stores staff

Multiple Choice Single AnswerQuestion The process of procurement of raw material, wip, finished goods, jigs,

fixtures and other tools and equipments which are required for the operation and

maintenance of a manufacturing plant is known as

Correct Answer Purchasing

Your Answer Purchasing


Question Receiving inspector should have to :-

Correct Answer Segregate defectives , Maintain vendor wise quality records

Your Answer Segregate defectives , Maintain vendor wise quality records


Question Identifying the need for source selection and source development is :-

Correct Answer Source requirement stage

Your Answer Source requirement stage

True/False

Question Supplier's delivery ratings should be communicated on periodical basis.

Correct Answer True

Your Answer True

Match The Following


Vendor rating Right source Right source

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Replenishment method Right time Right time

Competitive bidding Right price Right price

EOQ Right quantity Right quantity


Question EOQ means :-

Correct Answer When total cost & right quantity are balanced

Your Answer When total cost & right quantity are balanced


Question The cost incurred in movement of materials from suppliers works tobuyer's works is

Correct Answer Freight cost

Your Answer Freight cost


Question Value analysis speaks about :-

Correct Answer Cost improvement , Improvement in quality

Your Answer Cost improvement , Improvement in quality


Question Advantages of fixed price agreements are :-

Correct Answer They are easy to administer , They give certainty to the buyer who

knows from the start, amount he has to pay for the goods/services. , They protect buyer

from possible financial risks from price escalations

Your Answer They are easy to administer , They give certainty to the buyer who

knows from the start, amount he has to pay for the goods/services. , They protect buyer

from possible financial risks from price escalations


Question Main information in the bill of material is :-

Correct Answer Part no. , Material specification , Quantity per assembly

Your Answer Part no. , Material specification

Select The Blank

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Question ________ is responsible for purchase of goods of right quality, quantity,

time, price and source.

Correct Answer Purchase division

Your Answer Purchase division


Question The system not only should identify and classify all the existing items and

it should have enough extra unassigned codes to absorb future items is called as :-

Correct Answer Flexibility

Your Answer Flexibility


Question Purchasing today is no longer just a commercial activity but it is a techno

commercial activity. This is known as :-

Correct Answer Changing nature of purchasesYour Answer Changing nature of purchases

True/False

Question Black listing may be for a limited period or for an indefinite period.

Correct Answer True

Your Answer True


Question Actions involved in sample validation are :-

Correct Answer Follow up with the supplier until sample submission , Sample

inspection , Feedback on defects and defect prevention

Your Answer Sample inspection , Sample rejection

Select The Blank

Question In order to make purchasing effective and to resolve the allied problems,

there is ________ under the directorate.

Correct Answer Planning and development wing

Your Answer Planning and development wing


Question Climatic & environmental agent is :-

Correct Answer Temperature

Your Answer Temperature


Question The purchase of variety of items from single source is called as :-

Correct Answer Blanket orders

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Your Answer Speculative buying


Question The following are the actions would help to improve effectiveness of

materials planning :-

Correct Answer Accurate forecasting , Computerization , Shorter materials planperiod

Your Answer Accurate forecasting , Computerization , Shorter materials plan period


Question First-order interval system is also called as :-

Correct Answer Periodic ordering system , Periodic review system

Your Answer Price-brake quantity system , Periodic review system , Instantaneous

system

True/False

Question A rationalized classification system is a must to maintain numerous itemswhich are similar in nature but different in nomenclature.

Correct Answer True

Your Answer True


Question Disadvantages of forward buying are :-

Correct Answer Such a buying may not serve entirely the needs of the production

department , Price expectations if not realised may result in major financial loss to the

firm. , Large scale obsolescence may result if design changes occur.

Your Answer Such a buying may not serve entirely the needs of the production

department , Price expectations if not realised may result in major financial loss to the

firm. , Large scale obsolescence may result if design changes occur.

Select The Blank

Question High cost of operation links to ________.

Correct Answer Air

Your Answer Rail & Air

True/False

Question The trade discount is not allowed as a percentage of published price.


Your Answer False


Question Higher price is usually charged when the quantity required is small.

Bigger quantities on the other hand give the buyer a leverage to negotiate for better price

is :-

Correct Answer Quantity requirements

Your Answer Quantity requirements

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Select The Blank

Question ________ department in almost all companies is the biggest spending

department and the custodian of company's purse.


Your Answer Stores

True/False

Question Training of vendors in JIT concepts brings an end to the adversarial

relationships.

Correct Answer True

Your Answer True

True/False

Question Colour codification is commonly used for identification of lubricants.


Your Answer True

True/False

Question Purchase enquiry is raised in (n+1) copies where n is the number of

suppliers to whom enquiry is sent.

Correct Answer True

Your Answer True


Question Salient characteristics of kodak system are :-

Correct Answer Materials are divided into few broad classifications , Each

preliminary class is further divided into sub classes , Each sub class is next amplified into

kind of items

Your Answer Materials are divided into few broad classifications , Each preliminary

class is further divided into sub classes , Each sub class is next amplified into kind of

items


Question Fire is an accident caused by :-

Correct Answer Chemical reaction between combustible & oxygen

Your Answer Negligence of staff




Your Answer Set-up , Tool replenishment , First piece inspection

True/False

Question For effective materials research the firm must have a good library

equipped with specialized research reference.

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Correct Answer True

Your Answer False


Question Inspector must have :-

Correct Answer Ability to read & interpret drawings , Knowledge of trignometry

Your Answer Knowledge of trignometry , Ability to work hard , Ability to work in shifts


Question Import transactions are subject to following additional laws compared to

procurement from sources within the country as :-

Correct Answer Import trade control act ulation , Custom act , Central excise

Rules 2002Your Answer Import trade control act ulation , Custom act , Central excise Rules 2002


Question Verification of correctness of paper work and appropriateness of supply is

the responsibility of :-

Correct Answer Receiving Division

Your Answer Store keeping

Select The Blank

Question When one party is ready & willing to discharge its obligations at the right

time & place but the other party does not accept performance the contract is discharged

by________.

Correct Answer Tender

Your Answer Tender


Question Import policy of Government is updated in :-

Correct Answer Once in a year

Your Answer Once in a three year


Question The process of procurement of raw material, wip, finished goods, jigs,

fixtures and other tools and equipments which are required for the operation and

maintenance of a manufacturing plant is known as


Your Answer Purchasing


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