Preparing for compitative examination such as MCQ( Multiple choice questions) or for Inventory Management related jobs, you must test your knowledge an skills by asking some question on this topic.
In this article, we have enlisted some popular inventory control and management related multiple choice questions. Hope they will help you increase and test your knowledge.
MCQ Questions on Inventory Control and Management
Try to answer following questions. One of the item doesn’t fit in the list. Answer and explanation is given below every question and its choice list.
1 Identity which of the following is not Inventory?
A. Finished products
B. Raw materials
D. Consumable tools
Answer: C ( Machines are considered an asset in the company so it is not an inventory. But, machine parts can be a service/ maintenance inventory associated with the engineering and maintenance department not in main inventory category)
2 Which of the following is not considered Inventory in a frozen food factory?
B. Chicken breast
D. Spice mix
Answer: A (Forklift is equipment or machinery It is not being consumed in the production process or not being used in finished goods. remaining items are clearly raw materials which are inventory items)
3 Which of the following is not an inventory classification method?
Answer: C (In above list ABC (Always Better Control), HML (High Medium Low) and VED (Vital Essential Desirable) are inventory classification methods and SOP( Standard Operating Procedure) is not. Hence, it doesn’t fit in above list)
4 Which of the following is not an inventory valuation method?
D. WA (Weighted Average)
Answer: C (EOQ is not an inventory valuation method. Economic order quantity (EOQ) is the ideal order quantity a company should purchase for its inventory given a set cost of production, a certain demand rate, and other variables)
5 Which of the following is not an inventory management technique?
B. FIFO & LIFO
C. JIT (just in time)
D. Pert Analysis
Answer: D (PERT Analysis informs Program Managers and project personnel on the project’s tasks and the estimated amount of time required to complete each task. By utilizing this information a Program Manager will be able to estimate the minimum amount of time required to complete the entire project.)
6 Which of the following is not an inventory?
A. Work in progress
C. Raw material
D. Finished goods
Answer: B (Material requirements planning (MRP) is a system for calculating the materials or inventory needed to manufacture a product. It consists of three primary steps: taking inventory of the materials and components on hand, identifying which additional ones are needed and then scheduling their production or purchase. Since, it is planning process not an item so doesn’t fit in inventory items)
7 Which of the following is not an inventory control technique?
A. ABC analysis
B. FSN analysis
C. GOLF analysis
D. FTMN analysis
Answer: D (All of first three are inventory control techniques and FTMN is not associated any how with inventory control or management. Hence, it doesn’t fit in above list)
8 Which of the following is not an inventory cost?
A. Purchase cost
B. Transport in cost
C. Import duty
D. Selling cost
Answer: D (Selling cost is an indirect cost which does not have any direct association with the cost of production. Selling cost should be included and selling & distribution cost.)
9 Which of the following is not a part of inventory?
A. Finished goods
B. Raw material, consumables
C. Spare parts of plant machinery
D. Work in progress
Answer: C (Spare parts of plant machinery do not fall in main stream inventory category because it doesn’t require directly in production material to produce finished goods)