wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

InventoryControl

Total questions: 30

Worksheet time: 22mins

Name
Class
Date
1.
Among different types of costs associated with inventory, the costs of obtaining purchase approvals are ________.
a)
purchasing costs
b)
ordering costs 
c)
stockout costs 
d)
carrying costs
2.
Among different types of costs associated with inventory, the opportunity cost of the investment tied up in inventory is a(n) ________.
a)
purchasing cost 
b)
ordering cost
c)
stockout cost
d)
carrying cost
3.
The purchase-order lead time is the ________.
a)
time between placing an order and its delivery
b)
time between receiving a customer order and producing the products 
c)
) time between receiving a customer order and delivering the items 
d)
time required to correct errors in the defective products 
4.
Which of the following statements  is true of just-in-time (JIT) purchasing?
a)
In JIT purchasing, the optimal safety-stock level is the quantity of safety stock that minimizes the sum of annual relevant stockout and carrying costs.
b)
) JIT purchasing is guided solely by the EOQ model because that model emphasizes the tradeoff between relevant carrying and ordering costs.
c)
In JIT purchasing, raw materials (or goods) are purchased so that products are delivered just as needed for production or sales.
d)
Only disadvantage of JIT purchasing is the higher level carrying and inspection costs.
5.

After accounting for a sequence of inventory tags, an auditor traces a sample of tags to the physical inventory listing to obtain evidence that all items

a)

Included in the listing have been counted.

b)

Represented by inventory tags are included in the listing.

c)

Included in the listing are represented by inventory tags.

d)

Represented by inventory tags are bona fide.

6.

What is NOT important to stand in a purchase order?

a)

the amount (kg, l, pcs.)

b)

the name of the product

c)

the day of the desired delivery

d)

the invoice price for the guest/customer

e)

a specification of the product

7.

in a big Restaurant or Hotel, who is normally doing the purchase orders to the vendors?

a)

the hotel director

b)

the purchase manager

c)

the sous chef

d)

the guest/customer

8.

Why is a food specification so important?

a)

to get the best prices on the market

b)

for the control of my quality and cost

c)

for the vendor to come right in time

d)

that the purchase manager get the right salary each month

9.

What is FIFO?

a)

Football Organisation

b)

a local fish from Vietnam

c)

first in - first out - concept in storaging

d)

my favorite dessert from Alicia

10.

What does the FIFO-system means? 2 right answers!

a)

rotate your stock in the storage

b)

always lock your fridges from thieves

c)

move older food product in front of the shelf, the newer one in the back

d)

the purchase manager is responsible for the temperature check

11.

Service businesses refer to their main revenue as fees, trading firms refer to their main revenue as..

a)

Inventory

b)

Sales

c)

Stock

d)

Income

12.

T/F: Is GST recorded on the inventory card?

a)

True

b)

False

13.

First In, First Out is

a)

an assumption that the inventory purchased first is sold first

b)

the reality that the inventory purchased first is sold first

c)

an assumption that the inventory purchased last will be sold first

d)

a dance move

14.

Cost of sales

a)

Is the revenue generated from selling inventory

b)

The value of inventory recorded in the inventory cards

c)

Net profit minus Expenses

d)

Expenses incurred when inventory is sold

15.

Gross Profit is

a)

Revenue Less Expenses

b)

The profit earned purely from the purchase and sale of inventory

c)

The same as Net Profit

d)

The same as Sales Revenue

16.

T/F: A LARGE black tshirt and a MEDIUM black tshirt would share the same inventory card

a)

True

b)

False

17.

T/F: The only value ever recorded on the inventory card is the cost price

a)

TRUE

b)

FALSE

18.

Stock losses will result in ...

a)

An increase in Revenue

b)

An increase in Expenses

c)

An increase in Assets

d)

An decrease in Liabilities

19.

Which of the following is not a benefit of the perpetual inventory system

a)

Assists in the re-ordering of inventory

b)

Stock losses and gains can be detected

c)

Fast and slow moving inventory can be identified

d)

employees are kept busy counting inventory

20.
Kaizen means
a)
Continuous interaction
b)
Continuous meetings
c)
Continuous improvement
d)
Continuous communication
21.
Lean production essentially means the elimination of
a)
Labour
b)
Time
c)
Waste
d)
Problems
22.
Added value is when
a)
Inputs are transformed to create outputs that meet customer demand
b)
Inputs are made
c)
Inputs are transformed to create different outputs
d)
Inputs of a high quality have more value
23.
If the Output is 10,000 units and the number of employees is 25 what is the Labour productivity per employee.
a)
40
b)
4000
c)
400
d)
40000
24.
If the Unit cost is £30 and the output is £5,000 units, the fixed costs are £12,000 what are the variable costs?
a)
£28.00
b)
£27.00
c)
£27.60
d)
£27.50
25.
The following are all likely to improve productivity except which one?
a)
Increased automation
b)
Increased training
c)
Improved staff motivation
d)
Increased staff meetings
26.
Which of these is a common measure of labour productivity?
a)
Output scrap rate
b)
Profit margin
c)
Quality assurance level
d)
Output per worker per day
27.
Which of these pairs are ways to improve quality?
a)
Researching and Trialling
b)
Researching and Marketing
c)
Copying and Marketing
d)
Copying and Researching
28.
An advantage of using inspection in quality control is that
a)
Inspectors know what to look for
b)
Costs are increased because there is more waste
c)
It can prevent defective product from reaching customers
d)
It assures the reliability of the production process
29.
TQM systems emphasise the need for close links between all members of the
a)
workforce
b)
business community
c)
supply chain
d)
trade association
30.
An inventory lead time is
a)
The maximum level of inventory a Business can or wants to hold
b)
The average delay in handling customer orders
c)
the amount of time between placing an order with a supplier and receiving the stock
d)
the time taken to process outstanding sales orders