MCQ -WAREHOUSING

1. 1. For each additional day that vegetables are kept in warehouse,

• costs of warehousing are reduced.

• more profit is gained on the capital employed.

• the risk of wastage increases.

• the vegetables increase in value.

Which statement about a bonded warehouse is correct?

• Goods can be manufactured while they are in the bonded warehouse.

• Imported goods are stored in the bonded warehouse until their duty is paid

• Imported goods on which duty has been paid are stored in the bonded warehouse.

• Seasonal goods are stored in the bonded warehouse until they are demanded.

What is a function of warehousing?

• to allow standardization of goods to take place

• to enable production to take place ahead of deman

• to ensure market outlets for producers

• to provide space for the manufacture of goods

Why do hypermarkets use Regional Distribution Centres (RDCs)?

• to avoid paying tax

• to maintain stable prices

• to reduce advertising costs

• to save transport costs

What is the function of a bonded warehouse?

• to allow goods to be re-exported without payment of duty

• to manufacture goods for sale locally

• to provide a place for confiscated and smuggled goods

• to store home-produced goods for packing

Mr Chang is advertising his cash and carry warehouse. His advertisement includes some information which is not accurate for a cash and carry warehouse.

Which part of his advertisement is not accurate?

• discounted prices

• extended credit

• free car parking

• variety of goods

Manufacturers continue producing goods, even when the demand for their goods is seasonal, because they can

• advertise the goods

• insure the goods.

• transport the goods

• warehouse the goods

What is not a function of warehousing?

• ensuring the highest possible prices for goods

• keeping prices stable

• protecting goods from bad weather conditions

• reducing shortages of seasonal goods

Mr. Smith runs a small shop. He buys his stock from a cash and carry warehouse. This means that he has to

• buy in very large quantities.

• collect the goods himself.

• make his order via the Internet

• pay the warehouse monthly using his credit card.

Which of the following goods would be most likely to be stored in a bonded warehouse?

• coal

• perfume

• sugar

• wheat