Materials Cost Quiz

Which of the following is NOT considered a type of material: _____

• Raw materials

• Work in progress

• Consumable goods

• Fixed assets

The primary role of the procurement unit is _____.

• To issue materials to departments

• To purchase materials and stores

• To manage inventory levels

• To conduct quality control

Which document is used to record the receipt of ordered materials? The answer is _____.

What does FIFO stand for in inventory management? _____

Which of the following is a method of purchasing? _____

• Materials Requisition

• Standard Purchase Order

• Goods Received Note

• Inventory Ledger

The minimum inventory level is _____.

• The average level of inventory held

• The lowest level of inventory allowed

• The level at which an order is placed

• The highest level of inventory allowed

Which method uses the price of the last batch of materials received for all issues? The answer is _____.

• Standard Price

• Weighted Average

• Last In First Out

• First In First Out

The purpose of inventory control is _____.

• To enhance customer service

• To minimize costs and ensure availability

• To increase the number of suppliers

• To maximize storage space

_____ is a factor that influences the design of store procedures.

• The type of materials used

• The number of employees

• The location of the store

• The volume of materials handled

The ideal stock level to maintain is _____.

• The highest stock level possible

• The average stock level needed

• The ideal stock level to maintain

• The lowest stock level acceptable