Material Management Quiz

The first step in the purchase procedure is:

• Receipt of goods

• Preparation of purchase order

• Purchase requisition

• Payment to supplier

Which document is used to place an order with a supplier?

• Bin card

• Invoice

• Purchase order

• Goods received note

Reorder level is the level at which:

• Minimum stock is maintained

• Order is placed for new stock

• Maximum stock is maintained

• Stock is not required

The minimum level of stock indicates:

• The quantity to be sold

• The lowest stock before reordering

• Quantity to be reordered

• Stock not to be touched

EOQ stands for:

• Equal Order Quantity

• Economic Order Quantity

• Estimated Order Quota

• Emergency Order Quantity

EOQ is helpful to determine:

• Maximum stock required

• Quantity to be sold

• Optimum order size

• Price to be fixed

Which is used to record quantity of materials only?

• Stores ledger

• Sales register

• Bin card

• Invoice

Stores ledger records:

• Only quantity

• Only price

• Both quantity and value

• Employee wages

FIFO stands for:

• First In First Out

• Fastest In Fastest Out

• First In Few Out

• Final In Final Out

LIFO method issues materials based on:

• Highest value first

• Last materials purchased

• First materials purchased

• Lowest price first