CHAPTER 2 MULTIPLE CHOICE THEORETICAL - COST ACC GUERRERO 2018 ED. PDF

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CHAPTER 2 MULTIPLE CHOICE- THEORETICAL In a well-controlled materials sytem, the Purchasing Agent performs the following activities except the: a. Placing of purchase orders with suppliers b. Receiving of purchase requisitions c. Approving and checking of invoices d. Preparations of Purchase Order T...

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CHAPTER 2 MULTIPLE CHOICE- THEORETICAL 1. In a well-controlled materials sytem, the Purchasing Agent performs the following activities except the: a. b. c. d.

Placing of purchase orders with suppliers Receiving of purchase requisitions Approving and checking of invoices Preparations of Purchase Order

2. The purchase requisition is a document used to: a. b. c. d.

Initiate the return of merchandise to the vendor Inform the purchasing agent of a need for materials Initiate payment for materials ordered Inform the Purchasing Department of a receipt of materials

3. The materials requisition: a. Authorizes the storeroom to deliver types and quantities of materials to a given department b. Is the list of materials 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 4. 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 5. The bill of materials: a. Is the list of materials requirements for each step in the production sequence b. Informs the purchasing agent of the quantity and kind of materials needed c. Certifies quantities received and reports results of inspection and testing d. Authorizes the storeroom to deliver types of quantities of materials to a certain department

6. The receiving report: a. Is the list of materials needed for each step in the production cycle b. Certifies quantities received and reports results of inspection and testing c. Informs the purchasing agent of the quantity and kind of materials needed d. Contracts for quantities to be delivered. 7. The purchase requisition may originate from all of the following except: a. b. c. d.

A storeroom employee A materials record clerk A receiving Department clerk Other department employee who needs materials of a special nature.

8. 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. Arrange for inspection, when necessary 9. A company has been ordering more than the economic order quantity, This would result in: a. b. c. d.

More frequent order points Carrying costs greater than order costs Equal safety stock costs and carrying costs Carrying costs less than order costs

10. The purchasing department performs all of the following functions except: a. Compares quantities received with the supplier’s 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 11. An inventory control technique that reviews quantities on hand periodically and orders sufficient quantities to bring inventory up to a desired level expressed as a number of day’s or week’s supply is the:

a. b. c. d.

Order cycling method Two-bin method ABC Inventory Min-max method

12. The factor that need not be considered when calculating an inventory economic order quantity (EOQ) is: a. b. c. d.

Safety Stock level Annual Stock Level Annual Sales of a product Order-placing costs

13. Mars Company has correctly computed its EOQ as 500 units. However, management would order in quantities of 600 units. How will Mar’s total annual purchase order cost and total annual carrying costs for an order quantity of 600 units compare to the respective amounts for an order quantity of 500 units. a. b. c. d.

Lower purchase order cost and higher carrying cost Higher purchase order cost and lower carrying cost Higher purchase order cost and higher carrying cost Lower purchase order cost and lower carrying cost

14. The materials control method that is based on the premise that the quantities of most stock items are subject to definable limits is the: a. b. c. d.

Min-max method Cycle review method Two-bin method ABC plan

15. The materials control method that is based on physical observation that an order point has been reached is the: a. b. c. d.

Two-bin method Cycle review method Min-max Method ABC plan

LINDSAY ANNEMARIE N. FERRER

PCBET-01-301P

COST ACCOUNTING...