Wednesday, March 26, 2008

Taxation - 3

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question The entertainment allowance received by the
Government employees is included in their salaries
and the deduction is allowed to the extent of least of
the following amounts :-
Correct Answer Actual amount of Entertainment Allowance received. ,
Rs. 5,000 , 1/5th of Salary
Your Answer Actual amount of Entertainment Allowance received. ,
Rs. 5,000 , 1/5th of Salary
True/False
Question Income Tax Act, 1961 recognizes Written Down Value
(WDV) method as well as straight line method for the
computation of depreciation u/s 32 this act.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Profits earned by an Industrial Undertaking engaged
in other than infrastructure development is available
under Section 80IB for :-
Correct Answer Operation of Ship , Hotels situated in hilly area, rural
area or place of pilgrimage , Company engaged in
scientific and industrial research
Your Answer Operation of Ship , Hotels situated in hilly area, rural
area or place of pilgrimage
Multiple Choice Single Answer
Question Which of the following expenditure is in the nature of
revenue expenditure?
Correct Answer Expenditure incurred as discount on issue of
debentures
Your Answer Expenditure incurred as discount on issue of
debentures
Select The Blank
Question If sum received is net of TDS then it is ________ to
include in income from other sources.
Correct Answer Grossed up
Your Answer Grossed up
True/False
Question Interest paid on the loan for acquiring a capital asset
will be considered to be a part of cost of acquisition.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Mr. A whose Gross Total Income, before allowing
deductions under Chapter VI-A is Rs. 1,45,000, wants
to make the investments in the following alternative
forms Rs. 80,000 in PPF and Rs. 20,000 in
Infrastructure Bonds. The amount of rebate available
to him u/s 88 is :-
Correct Answer Rs. 18,000
Your Answer Rs. 18,000
Multiple Choice Single Answer
Question Interest on specified securities or premium on
redemption is exempt for :-
Correct Answer Non resident Indian
Your Answer Non resident Indian
True/False
Question As per section 2(11) of the Income Tax Act, Block of
Assets includes both tangible as well as intangible
assets.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Deductions in respect of Certain Incomes received
under Section 80L is available in respect of
Correct Answer Interest on Central or State Government Securities ,
Interest on National Saving Certificates (NSCs)
Interest on National Saving Scheme, 1992 (NSS) ,
Bank Interest
Your Answer Interest on Central or State Government Securities ,
Interest on National Saving Certificates (NSCs)
Interest on National Saving Scheme, 1992 (NSS) ,
Bank Interest
Multiple Choice Single Answer
Question Tax liability of a person is based on :-
Correct Answer Residential status
Your Answer Residential status
Multiple Choice Multiple Answer
Question For the purpose of income tax, the perquisites can be
classified into :-
Correct Answer Perquisites which are taxable in case of all types of
employees , Perquisites which are taxable only in the
hands of specified employee
Your Answer Perquisites which are taxable in case of all types of
employees , Perquisites which are taxable only in the
hands of specified employee
Select The Blank
Question For an individual as a citizen of India who leaves India
in the relevant previous year for the purpose of
employment has to be in India for ________ days or
more during previous year.
Correct Answer 182
Your Answer 182
Multiple Choice Single Answer
Question Income earned in previous year is subjected to tax in
:-
Correct Answer Assessment year
Your Answer Assessment year
Multiple Choice Multiple Answer
Question Following professional institutions have their incomes
exempt from tax :-
Correct Answer Town planning , Company secretary , Accounting
Your Answer Town planning , Company secretary , Accounting
Select The Blank
Question ________ of the Tax Audit Report refers to the details
of various payments which are allowed as deduction
only if they are actually paid for.
Correct Answer Section 43B Clause No-21
Your Answer Section 43B Clause No-21
Multiple Choice Multiple Answer
Question Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Your Answer Short Term Capital Gains. , Long term Capital Gains
Select The Blank
Question To claim sec 10A deduction unit must be established
in ________.
Correct Answer Free Trade Zone
Your Answer Free Trade Zone
Multiple Choice Single Answer
Question Assessment year is the period of 12 months starting
from :-
Correct Answer 1st April to 31st March
Your Answer 1st April to 31st March
Multiple Choice Single Answer
Question Combined total of five heads of income equals :-
Correct Answer Gross total income
Your Answer Gross total income
Multiple Choice Single Answer
Question If an employee does not avail of this leave travel
concession or assistance during a block of four
calendar years :-
Correct Answer Only one journey can be carried forward to the next
block.
Your Answer Only one journey can be carried forward to the next
block.
Select The Blank
Question To acquire PAN, a person shall apply in ________ to
the assessing officer.
Correct Answer Form No. 49A
Your Answer Form No. 49A
Multiple Choice Single Answer
Question Deduction from Capital Gains under Section 54F is for
Capital Gains arising from transfer of :-
Correct Answer Any Long Term Capital Asset
Your Answer House Property
Select The Blank
Question Where an assessee files or submits the returns as per
provisions of section 139 or in response to the notice
under section 142, the assessment officer undertakes
________ as per section 143(2) and section 143(3).
Correct Answer Scrutiny Assessment
Your Answer Scrutiny Assessment
Multiple Choice Multiple Answer
Question Income of a professional association is exempt if its
objectives are :-
Correct Answer Supervision , Control , Encouragement
Your Answer Supervision , Control , Encouragement
True/False
Question While computing the profits from Business and
profession, the business or profession must be carried
out during the previous year.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question In respect of leave travel concession If Mr. A has
availed the exemption only once or has not availed
any exemption at all, in the block of four years i.e.
1998-2001 then :-
Correct Answer He can carry over the exemption to the next block of
four years i.e. 2002-2005 provided that he avails the
exemption of LTC in the first calendar year of the next
block i.e. 2002.
Your Answer He can carry over the exemption to the next block of
four years i.e. 2002-2005 provided that he avails the
exemption of LTC in the first calendar year of the next
block i.e. 2002.
Multiple Choice Multiple Answer
Question The amount accumulated to the credit of the
employee's provident fund account is paid at the time
of :-
Correct Answer Retirement , Resignation
Your Answer Retirement , Resignation
Multiple Choice Multiple Answer
Question From annual value, following deductions are allowed :-
Correct Answer Standard deduction , Interest on borrowed capital ,
Municipal taxes
Your Answer Interest on borrowed capital , Municipal taxes
Multiple Choice Single Answer
Question As a general principle, the Basic Salary or Wages,
Dearness Allowance and Bonus / Commission is :-
Correct Answer Fully taxable.
Your Answer Fully taxable.
Multiple Choice Multiple Answer
Question From GTI of a company following deductions under
chapter VI A are allowed
Correct Answer 80 G Donations , 80 HHB profits and gains from
projects outside India , 80 IA profits and gains of
infrastructure companies
Your Answer 80 G Donations , 80 IA profits and gains of
infrastructure companies
Multiple Choice Single Answer
Question Annual value of any one palace in possession of a
former ruler is :-
Correct Answer Exempt
Your Answer Taxable
Select The Blank
Question If the Salary is more than Rs. 5,00,000, Standard
Deduction will be Rs.________.
Correct Answer 20000
Your Answer 20000
Multiple Choice Single Answer
Question The amount of accumulated interest on NSCs
purchased in the earlier years is assumed to be
reinvested :-
Correct Answer And qualifies for tax rebate under section 88.
Your Answer And qualifies for tax rebate under section 88.
Select The Blank
Question Deduction u/s ________B is available for 10
consequent assessment years from the year of
commencement of production.
Correct Answer 10
Your Answer 10
True/False
Question Income from subletting is treated as income from
house property.
Correct Answer False
Your Answer False
Select The Blank
Question Section 80U allows the deduction in respect of the
________ .
Correct Answer Permanent physical disability
Your Answer Permanent physical disability
Match The Following
Question Correct Answer Your Answer
Disallowable
Expenditure
Litigation Expenses in
connection with
recovery of a debt
which is not a trading
debt
Litigation Expenses in
connection with
recovery of a debt
which is not a trading
debt
Business Includes trade,
commerce, or
Includes trade,
commerce, or
manufacture or any
adventure or concern
in the nature of trade,
commerce or
manufacture
manufacture or any
adventure or concern in
the nature of trade,
commerce or
manufacture
Profession Includes vocation Includes vocation
Capital Expenditure Expenditure incurred
by a company with the
issue of rights shares
Premium on
redemption of
Debentures
True/False
Question Any recreational facility provided by the employer to a
group of employees (not being restricted to a select
few employees) is not exempt from tax.
Correct Answer False
Your Answer False
True/False
Question In case of deductions for medical treatment under
Section 80DDB the amount of deduction will be
reduced by the amount received under an insurance
policy or the amount reimbursed by the employer.
Correct Answer True
Your Answer True
True/False
Question Any advance tax paid before 31st March is treated as
advance tax paid during the previous year.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Municipal taxes paid is allowed as deduction from :-
Correct Answer Gross annual value
Your Answer Gross annual value
True/False
Question Entertainment Allowance received by the employees
from the private sector is taxable in the hands of the
employee.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Any subscription made
to National Saving
Scheme
By an individual or a
HUF is eligible for
rebate u/s 88
By an individual or a
HUF is eligible for
rebate u/s 88
Mr. A, a 70 years old
Senior Citizen, has the
Gross Total Income of
Rs. 2,50,000 during
the Assessment Year
2005-2006. He
invested Rs. 50,000 in
the tax saving bonds of
ICICI on 10th June
2004. His tax liability
for the A Y 2005-2006.
RS.12,500 RS.12,500
During the
Assessment Year
2005-2006, Mrs. A,
age 58 years, has the
Gross Total Income of
Rs. 1,45,000 including
the dividend from
Indian companies
amounting to Rs.
10,000. She invests
Rs. 50,000 in PPF
during the said
Assessment Year. her
tax liabilit is
Rs. 1,000 Rs. 1,000
Any contribution made
to a Public Provident
Fund
Is eligible for rebate
u/s 88
Is eligible for rebate u/s
88
Multiple Choice Multiple Answer
Question Following incomes of local authorities are exempt :-
Correct Answer Capital gains , Other income , House property
Your Answer Capital gains , Other income , House property
Multiple Choice Multiple Answer
Question For Deduction u/s 54EC from Capital Gains the
assessee should invest the whole or part of the capital
gains in the specified assets :-
Correct Answer Within six months from the date of transfer of the longterm
capital asset
Your Answer Within six months from the date of transfer of the longterm
capital asset
True/False
Question Income from partnership firms is exempt from taxation
for the partners
Correct Answer True
Your Answer False

Taxation - 2

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question 48 Deduction in respect of Contribution to certain pension funds is related to :-
Correct Answer Section 80CCC
Your Answer Section 80CCC
True/False
Question 49 The rebate u/s 88B is allowed before the rebate u/s 88 is allowed.
Correct Answer True
TAXATION
9
Your Answer False
Select The Blank
Question 50 Expenditure incurred in connection with the local festivals like Diwali etc. are
________ as business expenditure.
Correct Answer Allowed
Your Answer Allowed
Select The Blank
Question 51 Deduction is available for income from foreign sources under Section 80RR if
such remuneration brought into India in convertible foreign exchange within a
period of________ months from the end of the previous year.
Correct Answer 6
Your Answer 6
Multiple Choice Multiple Answer
Question 52 Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Your Answer Short Term Capital Gains. , Long term Capital Gains
Multiple Choice Single Answer
Question 53 Income from winning from lotteries / crossword puzzles/ horse races is taxed at
flat rate of :-
Correct Answer 0.3
Your Answer 0.35
Select The Blank
Question 54 Section 35D of the Act provides that the preliminary expenses can be ________
over a period of 5 years commencing from the year of commencement of
business.
Correct Answer Amortized and written off to profit and loss account
Your Answer Amortized and written off to profit and loss account
Select The Blank
Question 55 Section 43B of the IT Act provides that the certain payments are allowed as
deduction only if they are ________.
Correct Answer Actually paid
Your Answer Reasonable
Multiple Choice Multiple Answer
Question 56 The rebate u/s 88 is available to an :-
TAXATION
10
Correct Answer Individual , Hindu Undivided Family.
Your Answer Individual , Hindu Undivided Family.
Multiple Choice Single Answer
Question 57 Income from other sources covers agricultural income from land situated :-
Correct Answer Outside India
Your Answer Outside India
Multiple Choice Multiple Answer
Question 58 A return is considered to be defective returns under section 139(9) unless :-
Correct Answer The computation of income under each head, Gross Total Income are properly
filed in , The return is accompanied by the tax audit report under section 44AB ,
The return is accompanied by copies of required financial statements of the
assessee
Your Answer The computation of income under each head, Gross Total Income are properly
filed in , The return is accompanied by the tax audit report under section 44AB ,
The return is accompanied by copies of required financial statements of the
assessee
Multiple Choice Single Answer
Question 59 If an employee does not avail of this leave travel concession or assistance
during a block of four calendar years :-
Correct Answer Only one journey can be carried forward to the next block.
Your Answer Only one journey can be carried forward to the next block.
Select The Blank
Question 60 The person who does not deduct the tax source as required by the Act or after
deducting fails to pay the tax as required by the Act, shall be liable to pay the
simple interest @________ % per month on the amount of such tax from the
date on which the tax was deductible till the date on which such tax is actually
paid.
Correct Answer 1
Your Answer 1.25
Multiple Choice Multiple Answer
Question 61 The assessing officer may allot the Permanent Account Number(PAN) to :-
Correct Answer Person whose Total Income during previous year exceeds the maximum
amount, chargeable to tax , Person carrying on the business or profession
whose turnover exceeds Rs.5 lakhs in any previous year , Any other person by
whom tax is payable
Your Answer Person carrying on the business or profession whose turnover exceeds Rs.5
lakhs in any previous year , Any other person by whom tax is payable , Any
person not applying for permanent account number but, tax is payable by him
TAXATION
11
Multiple Choice Multiple Answer
Question 62 The provisions for payment of gratuity is not allowed under section 40A(7) but,
under the head, profits from business and profession, the amount of gratuity will
be allowed as deduction only when :-
Correct Answer The amount of gratuity has actually become payable to the employees during
the previous year , The provision has been made for the payment of a sum by
way of contribution to an approval gratuity , The other than the above two
situations, any provision made for the payment of gratuity is not allowed as
deduction
Your Answer The amount of gratuity has actually become payable to the employees during
the previous year , The provision has been made for the payment of a sum by
way of contribution to an approval gratuity , The other than the above two
situations, any provision made for the payment of gratuity is not allowed as
deduction
Multiple Choice Multiple Answer
Question 63 For the purpose of taxability of perquisite a specified employee means :-
Correct Answer The person who is director of a company , The employee who has substantial
interest in the company by having 20% or more of the voting power , The
employee whose income under the head salaries (including all the taxable
monetary payments of salary but excluding the value of any non-monetary
benefits or perquisites), after allowing deductions under Section 16, exceeds
Rs. 50,000
Your Answer The person who is director of a company , The employee who has substantial
interest in the company by having 20% or more of the voting power , The
employee whose income under the head salaries (including all the taxable
monetary payments of salary but excluding the value of any non-monetary
benefits or perquisites), after allowing deductions under Section 16, exceeds
Rs. 50,000
True/False
Question 64 Sum received under a will / inheritance is not exempt.
Correct Answer True
Your Answer False
Select The Blank
Question 65 It should be noted that the tax liability of an individual having the total income of
less than Rs ________ is Nil u/s 88D.
Correct Answer 1,00,000
Your Answer 1,00,000
Match The Following
Question 66 Correct Answer Your Answer
All intangible assets like
Patents, Trademarks, Copy
Rights, Licenses etc.
Rate of depreciation is 25% Rate of depreciation is 25%
Temporary Structures Rate of depreciation is 100% Rate of depreciation is 10%
TAXATION
12
Computers Rate of depreciation is 60% Rate of depreciation is 40%
Containers made of glass or
plastic used as refills
Rate of depreciation is 40% Rate of depreciation is 60%
Select The Blank
Question 67 In case of foreign companies rate of tax is ________.
Correct Answer 0.35
Your Answer 0.35
Multiple Choice Single Answer
Question 68 Which of the following expenditure is in the nature of revenue expenditure?
Correct Answer Expenditure incurred as discount on issue of debentures
Your Answer Expenditure incurred as discount on issue of debentures
Multiple Choice Multiple Answer
Question 69 For the purpose of Section 40 A (2) of the IT Act, if assessee is a firm, the term
"Specified Persons" may include :-
Correct Answer Any partner of the firm or his relative , Any person having the substantial interest
in the business or profession of the firm or any director or partner of such
company or firm or any relative of such person. , Any person who carries on
business or profession and in his business or profession the assessee or any
partner of such firm or relative of such partner has substantial interest.
Your Answer Any partner of the firm or his relative , Any person having the substantial interest
in the business or profession of the firm or any director or partner of such
company or firm or any relative of such person. , Any person who carries on
business or profession and in his business or profession the assessee or any
partner of such firm or relative of such partner has substantial interest.
Multiple Choice Single Answer
Question 70 For charging the income in the form of salaries :-
Correct Answer There needs to be an employer-employee relationship between the payer and
the payee.
Your Answer There needs to be an employer-employee relationship between the payer and
the payee.
True/False
Question 71 For claiming the deduction under section 80IA, the industrial undertaking should
be owned by a company registered in India or a consortium of such companies.
Correct Answer True
Your Answer True
Select The Blank
Question 72 Any expenditure incurred by the assessee for any purpose which is ________
or which is prohibited by law shall not be allowed as business expenditure
TAXATION
13
Correct Answer Offence
Your Answer Offence
Multiple Choice Single Answer
Question 73 As a general principle, the Basic Salary or Wages, Dearness Allowance and
Bonus / Commission is :-
Correct Answer Fully taxable.
Your Answer Fully taxable.
True/False
Question 74 Rebates as per the provisions of Section 88 of the Act are not available from the
tax on long-term capital gains.
Correct Answer True
Your Answer True
True/False
Question 75 MAT is applicable if there is a difference of 7.5% between net profit & book
profit.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question 76 For the purpose of Section 40 A (2) of the IT Act, if assessee is an individual,
the term "Specified Persons" may include :-
Correct Answer Any relative of such individual , Any person (individual, company, firm etc.)
having a substantial interest in the business or profession of the individual or
any director or partner of such company or firm or any relative of such person. ,
Any person who carries on a business or profession and in his business or
profession, the assessee himself or his relative has a substantial interest.
Your Answer Any relative of such individual , Any person (individual, company, firm etc.)
having a substantial interest in the business or profession of the individual or
any director or partner of such company or firm or any relative of such person. ,
Any person who carries on a business or profession and in his business or
profession, the assessee himself or his relative has a substantial interest.
Select The Blank
Question 77 Deduction for remuneration from foreign sources for professors, teachers etc
under Section 80R is limited to ________% of such remuneration brought in
India.
Correct Answer 15
Your Answer 10
True/False
Question 78 Any expenditure incurred for earning the income which is included under the
head income from other sources will be allowed as deduction from such income
TAXATION
14
provided that certain conditions are satisfied
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question 79 Deduction from Capital Gains from the transfer of residential house property
under Section 54 is available to :-
Correct Answer Individual , HUF
Your Answer Individual , HUF , Company
True/False
Question 80 Income earned & received outside India & remitted to India is taxable for
resident & ordinary resident
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question 81 Mr X has received Rs 200000 as income from salary, Rs 50000 income from
house property and he also received Rs 100000 income from specified units of
the mutual fund. What will be his total income
Correct Answer Rs 250000
Your Answer Rs 250000
Multiple Choice Multiple Answer
Question 82 Standard deduction takes care of :-
Correct Answer Repairs & maintenance , Insurance premium , Ground rent
Your Answer Insurance premium
Match The Following
Question 83 Correct Answer Your Answer
Individual partners & firms Are separate taxable entities Losses are shared equally
Partnership firm Companies can be partners Are separate taxable entities
Company partners Can not get salaries Companies can be partners
Individual partners Can be partners in any number
of firms
Can be partners in any number
of firms
Multiple Choice Multiple Answer
TAXATION
15
Question 84 Capital Gains arise on account of excess of transfer consideration over the
following amounts
Correct Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly and
exclusively in connection with the transfer
Your Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly and
exclusively in connection with the transfer
True/False
Question 85 Income of a mutual fund is taxable even if it is authorized by RBI.
Correct Answer False
Your Answer False
Select The Blank
Question 86 If sum received is net of TDS then it is ________ to include in income from other
sources.
Correct Answer Grossed up
Your Answer Grossed up
Multiple Choice Multiple Answer
Question 87 What is the tax treatment of Statutory Provident Fund?
Correct Answer Employer's Contribution to PF is not liable for any tax payment , Interest
credited to the employee's account is not liable for any tax payment. , The lump
sum received at the time of retirement or resignation or death is also exempt
under section 10(11) and 10(12).
Your Answer Employer's Contribution to PF is not liable for any tax payment , Interest
credited to the employee's account is not liable for any tax payment. , The lump
sum received at the time of retirement or resignation or death is also exempt
under section 10(11) and 10(12).
True/False
Question 88 Interest paid on the loan for acquiring a capital asset will be considered to be a
part of cost of acquisition.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question 89 What is the manner in which Income from Salaries is taxable?
Correct Answer Due basis or 'receipt' basis whichever is earlier.
Your Answer Due basis or 'receipt' basis whichever is earlier.
Multiple Choice Single Answer
Question 90 Deduction from Capital Gains under Section 54F is for Capital Gains arising
from transfer of :-
Correct Answer Any Long Term Capital Asset
TAXATION
16
Your Answer Any Long Term Capital Asset
Multiple Choice Single Answer
Question 91 In case the assessee is not a company, a person(other than a company) who is
falling under One by Six economic criteria, the last date for filing the return is
prescribed as :-
Correct Answer 31st July of the Assessment year
Your Answer 31st July of the Assessment year
Select The Blank
Question 92 Registration charges in connection with the increasing of ________ share
capital of the company is not allowed as revenue expenditure.
Correct Answer Authorized
Your Answer Authorized
True/False
Question 93 The amount of telephone bills (including the mobile phone bills) of the employee
reimbursed by the employer is taxable in the hands of the employee.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question 94 As per which provision and section, every person, company or any other person
shall furnish his returns of income in the prescribed form on or before the
specified due date?
Correct Answer Section 139(1)
Your Answer Section 139(2)

Taxation - 1

TAXATION
1
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question 1 Mr X a salaried employee has received total educational allowance of Rs 8,000
for his four children, the maximum allowance exempt is ________ u/s 10(14) of
the IT Act.
Correct Answer Rs 2,400
Your Answer Rs 2,400
Multiple Choice Multiple Answer
Question2 What is the tax treatment of the Lump sum received from unrecognized
provident fund on the retirement or resignation or death of the employee?
Correct Answer Employee's contribution to PF is exempt from tax , Interest on employee's
contribution is taxable as "Income from Other Sources" , Employer's
Contribution to PF and interest thereon is taxable as "Income from salaries"
Your Answer Interest on employee's contribution is taxable as "Income from Other Sources" ,
Employer's Contribution to PF and interest thereon is taxable as "Income from
salaries" , Employee's contribution to PF is exempt from tax
True/False
Question 3 Software technology park means set up according to Software Technology Park
Scheme framed by Ministry of Commerce & Industries.
Correct Answer True
Your Answer True
Select The Blank
Question 4 It is mandatory for ________ to file a return even if there is loss or the income is
nil.
Correct Answer A company
Your Answer Persons under "One by Six" scheme
Multiple Choice Multiple Answer
Question 5 Following professional institutions have their incomes exempt from tax :-
Correct Answer Town planning , Company secretary , Accounting
Your Answer Town planning , Company secretary , Accounting
Multiple Choice Multiple Answer
Question 6 Which of the following amounts credited to P & L Account but not taxable from
Income tax Purposes as Profits from Business and Profession?
Correct Answer Refund of Income tax , Capital Gains , Dividend Income
Your Answer Refund of Income tax , Capital Gains , Dividend Income
Select The Blank

Question 7 ________ is the tax payable on the manufacturing of goods.
Correct Answer Excise duty
Your Answer Excise duty
Select The Blank
Question 8 The amount paid by the employer to the employee to meet the expenditure for
residential accommodation occupied by the employee is called ________.
Correct Answer House rent allowance
Your Answer House rent allowance
Multiple Choice Multiple Answer
Question 9 Any amount deposited by an Individual or a HUF in 10 year or 15 year account
under the Post Office Saving Bank (CTD) Rules, 1959. The account can be in
the name of :-
Correct Answer The individual himself , A minor of whom he is the guardian.
Your Answer The individual himself , A minor of whom he is the guardian.
Select The Blank
Question 10 Section 80U allows the deduction in respect of the ________ .
Correct Answer Permanent physical disability
Your Answer Permanent physical disability
Multiple Choice Single Answer
Question 11 Income of notified news agencies is exempt provided :-
Correct Answer They apply their income for collection & distribution of news
Your Answer They apply their income for collection & distribution of news
Multiple Choice Single Answer
Question 12 The total amount of rebates under Section 88, Section 88B, Section 88C and
Section 88D of the Act. shall :-
Correct Answer Not exceed the amount of tax calculated on the total income.
Your Answer Not exceed the amount of tax calculated on the total income.
Multiple Choice Single Answer
Question 13 What is the treatment of Uncommuted Pension?
Correct Answer It is taxable as Income from Salaries.
Your Answer It is taxable as Income from Salaries.

Multiple Choice Multiple Answer
Question 14 Perquisites which are taxable only in the hands of specified employee include
the following categories of perquisites :-
Correct Answer Motor Car , Services of sweeper, gardener, watchman or personal attendant ,
Gas, electricity and water provided for personal consumption
Your Answer Motor Car , Services of sweeper, gardener, watchman or personal attendant ,
Gas, electricity and water provided for personal consumption
Multiple Choice Single Answer
Question 15 The Central Government has introduced a new pension scheme for the
employees employed on or after 15th January, 2004. These employees are
required to contribute 10% of their salaries to this pension scheme. How much
will the Central Government contribute to the Fund?
Correct Answer Equal amount
Your Answer Equal amount
True/False
Question 16 In case of deductions for medical treatment under Section 80DDB the amount of
deduction will be reduced by the amount received under an insurance policy or
the amount reimbursed by the employer.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question 17 If any person fails to get the accounts audited by a Chartered Accountant and
fails to submit the copy of such report under section 44AB, he will be liable to
pay the penalty equal to :-
Correct Answer 0.5% of sales turnover/gross receipts or Rs.1lakh whichever is less
Your Answer 0.5% of sales turnover/gross receipts or Rs.1lakh whichever is less
Select The Blank
Question 18 Section 35E of the Act applies to all the ________ engaged in the business of
prospecting for or extraction or production of certain specified minerals.
Correct Answer Resident assessees
Your Answer Non-ordinary resident assessees
Multiple Choice Multiple Answer
Question 19 Profits earned by an Industrial Undertaking engaged in other than infrastructure
development is available under Section 80IB for :-
Correct Answer Operation of Ship , Hotels situated in hilly area, rural area or place of pilgrimage
, Company engaged in scientific and industrial research
Your Answer Operation of Ship , Hotels situated in hilly area, rural area or place of pilgrimage
, Company engaged in scientific and industrial research
True/False
Question 20 Jewellery held by the assessee is not a Capital Asset.


Correct Answer False
Your Answer False
Select The Blank
Question 21 House rent allowance is exempt from the heading ________.
Correct Answer Income from salaries
Your Answer Income from salaries
Multiple Choice Multiple Answer
Question 22 The various payments which are referred as deductions under section 43B,
Clause No-21 are :-
Correct Answer Any employees contribution payable by the assessee towards any Provident
Fund or Superannuation Fund or Gratuity Fund for the welfare of the employees
, Any sum payable by the assessee by way of tax duty, cess or fee , Any sum
payable by the assessee as interest on any loan or borrowing made by him from
any public financial institution or state financial corporation as per the terms of
the agreement
Your Answer Any employees contribution payable by the assessee towards any Provident
Fund or Superannuation Fund or Gratuity Fund for the welfare of the employees
, Any sum payable by the assessee by way of tax duty, cess or fee , Any sum
payable by the assessee as interest on any loan or borrowing made by him from
any public financial institution or state financial corporation as per the terms of
the agreement
Select The Blank
Question 23 The rebate u/s ________ is available to a woman assessee below the age of 65
years at any time during the previous years.
Correct Answer 88C
Your Answer 88B
True/False
Question 24 An deduction is allowed to an assesse as an employer in respect of contribution
made to any non-statutory fund under the section 40A(9).
Correct Answer False
Your Answer True
True/False
Question 25 Dividend received by the shareholder is treated as income chargeable to tax u/s
10(34) of the IT Act.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question 26 The assessee is required to quote PAN in :-


Correct Answer All returns to or correspondence with the Income Tax Authorities , All the
challans for the payment of any amount under the Act , All the documents
pertaining to purchase, sale and bank transactions
Your Answer All returns to or correspondence with the Income Tax Authorities , All the
challans for the payment of any amount under the Act , All the documents
pertaining to purchase, sale and bank transactions
Multiple Choice Single Answer
Question 27 Any person carrying on business or profession has to submit the Audit Report in
prescribed form, signed by Chartered Accountant before 31st October of the
assessment year, whether the return of income is filed or not. This is in
compliance with :-
Correct Answer Section 44AB of the Act
Your Answer Section 44AB of the Act
Multiple Choice Single Answer
Question 28 In case of the individual or HUF whose Gross Total Income, before deductions
under Chapter VI-A, is more than Rs. 5,00,000, then :-
Correct Answer No rebate will be available u/s 88.
Your Answer Rebate will be available u/s 88
Multiple Choice Single Answer
Question 29 If firm fails to submit copy of deed along with return of income :-
Correct Answer It will not constitute a separate taxable entity
Your Answer It will not constitute a separate taxable entity
Multiple Choice Single Answer
Question 30 In order to avoid the cases of tax evasion on the part of the assessees, the Act
has provided for :-
Correct Answer Tax deduction at source
Your Answer Tax deduction at source
Multiple Choice Multiple Answer
Question 31 Which of the following expenditures are expressly disallowed to be deducted
while computing the profits from business and profession
Correct Answer Income Tax , Wealth Tax
Your Answer Income Tax , Wealth Tax
True/False
Question 32 Section 80QQB is applicable to the individual resident who is an author of text
books.
Correct Answer False
Your Answer False

Select The Blank
Question 33 Section 35AC of the Act applies to any sum paid by the assessee to a public
sector company or a local authority or an association approved by the national
committee for ________ for carrying out any project in upliftment of public.
Correct Answer Promotion of social and economic welfare
Your Answer Promotion of social and economic welfare
Multiple Choice Single Answer
Question 34 Income from sub-letting of a house property is income from :-
Correct Answer Other sources
Your Answer Subletting
Multiple Choice Multiple Answer
Question 35 Income of a professional association is exempt if its objectives are :-
Correct Answer Supervision , Control , Encouragement
Your Answer Supervision , Control , Encouragement
Multiple Choice Multiple Answer
Question 36 Choose capital expenditure from the following list :-
Correct Answer Purchase of Building , Purchase of machinery
Your Answer Purchase of Building , Construction of temporary structures , Purchase of
machinery
True/False
Question 37 Loss under the head Profits from Business or Profession can be adjusted
against the Income from Salaries.
Correct Answer False
Your Answer False
Select The Blank
Question 38 Deduction u/s 10A is ________ of export proportion of profits.
Correct Answer 0.9
Your Answer 0.9
True/False
Question 39 Rebates as per the provisions of Section 88C of the Act are not available from
the tax on long-term capital gains.
Correct Answer False

Your Answer False
True/False
Question 40 Dividend received from domestic company to its shareholders is taxable in the
hands of the shareholder.
Correct Answer False
Your Answer True
Match The Following
Question 41 Correct Answer Your Answer
Super Annuation Fund This is an employee welfare
scheme which is usually
applicable in case of very
senior employees
This is an employee welfare
scheme which is usually
applicable in case of very senior
employees
Statutory Provident Fund This is set up as per the
provisions of Provident Fund
Act, 1925. This is maintained
by Government organizations,
local authorities, universities
and educational institutions.
This is set up as per the
provisions of Provident Fund
Act, 1925. This is maintained by
Government organizations, local
authorities, universities and
educational institutions.
Recognised Provident Fund This is the provident fund to
which the provisions of
Employees Provident Fund and
Miscellaneous Provisions Act,
1952 apply.
This is the provident fund to
which the provisions of
Employees Provident Fund and
Miscellaneous Provisions Act,
1952 apply.
Unrecognised Provident Fund The provident fund which is not
recognized by the income tax
authorities is called as
unrecognized provident fund.
The provident fund which is not
recognized by the income tax
authorities is called as
unrecognized provident fund.
Multiple Choice Single Answer
Question 42 Tax liability of a person is based on :-
Correct Answer Residential status
Your Answer Residential status
Select The Blank
Question 43 The amount of compensation received or receivable by the employee from the
employer at the time of termination of his employment or at the time of
modification of terms and conditions in connection with the employment is called
as ________.
Correct Answer Terminal compensation.
Your Answer Terminal compensation.
Match The Following

Question 44 Correct Answer Your Answer
Intangible Capital Asset Tenancy Rights Tenancy Rights
Excluded from ambit of term
Capital Asset
Stock in Trade Land held for a period of 36
months or more
Short Term Capital Asset Equity Shares held for a period
of Less than 36 months
Stock in Trade
Long Term Capital Asset Land held for a period of 36
months or more
Building
Multiple Choice Multiple Answer
Question 45 The entertainment allowance received by the Government employees is
included in their salaries and the deduction is allowed to the extent of least of
the following amounts :-
Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowance
received.
Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowance
received.
True/False
Question 46 Annual premium paid by the employer for the accident insurance policy taken by
the employer in the name of the employee is chargeable to tax.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question 47 Following condition needs to be satisfied for claiming the exemption under
Section 54F :-
Correct Answer The assessee is an individual or a HUF
Your Answer The assesse is Firm

Saturday, March 15, 2008

Materials Management - 4

Select The Blank
Question
Inspection methods analyze ________.
Correct Answer
Degree of inspection
Your Answer
Quality of material

Multiple Choice Single Answer
Question
In Fixed-Order quantity system, cycle time of consumption should be :-
Correct Answer
More than lead time
Your Answer
Less than lead-time

Select The Blank
Question
In the ________ , the composition of code is in three groups of digits that are separated by hyphens, the hyphens serves to break the code into easy to handle group of digits.
Correct Answer
Kodak system
Your Answer
Kodak system

Multiple Choice Single Answer
Question
A buyer gives wrong idea to his supplier about his requirements or show a fictitious figure to get some price discount is called as :-
Correct Answer
Misrepresentation of facts
Your Answer
Misrepresentation of facts

Multiple Choice Single Answer
Question
JIT is an :-
Correct Answer
Inventory reduction technique
Your Answer
Just-in-time

Multiple Choice Single Answer
Question
Issues to top up supply to pre-fixed levels of items are :-
Correct Answer
Imprest issues
Your Answer
Imprest issues

True/False
Question
Two bin system is better as compared to perpetual inventory system.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
Annual total cost changes :-
Correct Answer
If stock turnover rate changes , If quantity changes
Your Answer
If stock turnover rate changes , If procurement cost changes , If set-up cost changes

True/False
Question
Functionally critical parts require to be covered under cent per cent inspection
Correct Answer
True
Your Answer
False

Select The Blank
Question
GRR are sent from ________.
Correct Answer
Stores Dept.
Your Answer
Stores Dept.

Multiple Choice Single Answer
Question
Competitive price information must be treated as confidential and should not be disclosed to the bidders with an intention of allowing them to rebid is :-
Correct Answer
Improprieties of bids
Your Answer
Price disclosure

Select The Blank
Question
Good ________ relations are necessary for effective materials planning as every department is involved in materials planning because each department requires one item or other another.
Correct Answer
Departmental
Your Answer
Departmental

Multiple Choice Multiple Answer
Question
The following are the actions would help to improve effectiveness of materials planning :-
Correct Answer
Accurate forecasting , Computerization , Shorter materials plan period
Your Answer
Accurate forecasting , Computerization , Shorter materials plan period

Match The Following
Question
Correct Answer
Your Answer
JE
Journal Entries
Journal Entries
PO
Purchase order
Purchase order
GRN
Goods receipt note
Goods receipt note
DN
Discrepancy note.
Discrepancy note.

True/False
Question
Cancellation of orders on flimsy ground is unethical.
Correct Answer
True
Your Answer
True

Select The Blank
Question
Standardized containers eliminates ________
Correct Answer
Transit damage
Your Answer
Transit damage

Multiple Choice Single Answer
Question
Purchase order offers acceptance and have been clearly laid down in :-
Correct Answer
Indian Contract act 1872
Your Answer
Indian Contract act 1872

Multiple Choice Single Answer
Question
For the inspection of Stationery which department is responsible?
Correct Answer
Stores
Your Answer
Stores

Match The Following
Question
Correct Answer
Your Answer
FAS (4-2)
Sale at the port of destination
Sale at port of export
FOB (1-1)
Sale is made on FOB vessel
Sale is made on FOB vessel
CIF (2-4)
Sale is made at port of destination
Sale at the port of destination
CFR (3-3)
Sale at port of export
Sale is made at port of destination

Multiple Choice Single Answer
Question
Reprocessing of Scrap is :-
Correct Answer
Reclaiming for re-use
Your Answer
Reclaiming for re-use

Multiple Choice Single Answer
Question
Limit gauges are used to verify :-
Correct Answer
Whether the product is within the specification
Your Answer
Whether the product is within the specification

Multiple Choice Single Answer
Question
Which of the following is not the internal factor influencing materials planning?
Correct Answer
International market
Your Answer
International market

Multiple Choice Single Answer
Question
The system should be designed in such a way that it serves the advantages that are expected to accrue from it, is called as :-
Correct Answer
Objective oriented
Your Answer
Objective oriented

Multiple Choice Single Answer
Question
Real creative ideas results :-
Correct Answer
When members ventures into impossible areas
Your Answer
When opportunity is given to staff

Multiple Choice Multiple Answer
Question
Segregation of scrap means :-
Correct Answer
Sorting by type, size, grade etc. , Sorting by grade, weight
Your Answer
Sorting by type, size, grade etc. , Sorting by grade, weight

Select The Blank
Question
________clause should be inserted in the purchase order of items critical to project to induce supplier for early completion of the orders.
Correct Answer
Bonus
Your Answer
Penalty for delay

True/False
Question
Single tender system is used when there is only one supplier of the item.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Following are benefits of scientific stoke management :-
Correct Answer
Reduction in downtime by efficient issues , Inventory control , Very less time required to identify & issue material
Your Answer
Reduction in downtime by efficient issues , Inventory control , Very less time required to identify & issue material

True/False
Question
Stores is the "Safe Custody" for keeping materials
Correct Answer
True
Your Answer
True

True/False
Question
Value analysis is the cost reduction technique.
Correct Answer
True
Your Answer
True

True/False
Question
Codification avoids confusion and doubt caused by long description of items.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Complaints concerning should be made in such a way that negative reactions are avoided such as :-
Correct Answer
Delivery failures , Rejection , Shortages
Your Answer
Delivery failures , Rejection , Shortages

True/False
Question
A firm engaged in custom-built-product, is usually plagued with obsolete material.
Correct Answer
True
Your Answer
True

Select The Blank
Question
________ refers to the procurement of the requirements of all departments of the firm by a central purchase organization.
Correct Answer
Centralisation
Your Answer
Centralisation

Multiple Choice Multiple Answer
Question
Conventional machine set-up time includes :-
Correct Answer
Tool replenishment , First piece inspection
Your Answer
Tool replenishment , First piece inspection , Set-up

Multiple Choice Multiple Answer
Question
Stock-out is due to :-
Correct Answer
Unusual high demands , Delay in deliveries
Your Answer
Unusual high demands , Delay in deliveries , Machine break-down

True/False
Question
Negotiation should end up with an unhappy supplier.
Correct Answer
False
Your Answer
False

Select The Blank
Question
Systematic, formal and continuous analysis of all factors affect ________ management function is known as Materials research.
Correct Answer
Materials
Your Answer
Materials

True/False
Question
Since stock-taking is a check on storekeeper, it should not be conducted by him.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Salient features of the working of the price panel are as under :-
Correct Answer
Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the secretary of the price panel , Members of the panel meet to scrutinize and discuss the cost aspects.
Your Answer
Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the secretary of the price panel , Members of the panel meet to scrutinize and discuss the cost aspects.

Multiple Choice Multiple Answer
Question
Application for an import license must be signed from :-
Correct Answer
Proprietor , Partner of firm , Person duly authorized by board of directors of company
Your Answer
Proprietor , Partner of firm , Person duly authorized by board of directors of company

True/False
Question
Manual inspection is economical when volume of output is small.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
For large organizations where product is made up of assemblies of manufactured components raw material store is subdivided into :-
Correct Answer
Foundry store , Tool crib , Maintenance store
Your Answer
Foundry store , Tool crib , Goods inward store

True/False
Question
Post parcel consignments are cleared through customs & clearance is done through foreign post office.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
What is the meaning of discharge of contract by novation?
Correct Answer
If the parties agree to substitute a new contract in place of existing one or alter it, original contract is discharged
Your Answer
If the parties agree to substitute a new contract in place of existing one or alter it, original contract is discharged

Select The Blank
Question
Quantity delivered of goods must be according to the ________.
Correct Answer
Terms of contract
Your Answer
Terms of contract

Multiple Choice Single Answer
Question
Which of the following is not the external factor influencing materials planning?
Correct Answer
Corporate objective
Your Answer
Corporate objective

Materials Management - 3

Select The Blank
Question
Inspection methods analyze ________.
Correct Answer
Degree of inspection
Your Answer
Quality of material

Multiple Choice Single Answer
Question
In Fixed-Order quantity system, cycle time of consumption should be :-
Correct Answer
More than lead time
Your Answer
Less than lead-time

Select The Blank
Question
In the ________ , the composition of code is in three groups of digits that are separated by hyphens, the hyphens serves to break the code into easy to handle group of digits.
Correct Answer
Kodak system
Your Answer
Kodak system

Multiple Choice Single Answer
Question
A buyer gives wrong idea to his supplier about his requirements or show a fictitious figure to get some price discount is called as :-
Correct Answer
Misrepresentation of facts
Your Answer
Misrepresentation of facts

Multiple Choice Single Answer
Question
JIT is an :-
Correct Answer
Inventory reduction technique
Your Answer
Just-in-time

Multiple Choice Single Answer
Question
Issues to top up supply to pre-fixed levels of items are :-
Correct Answer
Imprest issues
Your Answer
Imprest issues

True/False
Question
Two bin system is better as compared to perpetual inventory system.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
Annual total cost changes :-
Correct Answer
If stock turnover rate changes , If quantity changes
Your Answer
If stock turnover rate changes , If procurement cost changes , If set-up cost changes

True/False
Question
Functionally critical parts require to be covered under cent per cent inspection
Correct Answer
True
Your Answer
False

Select The Blank
Question
GRR are sent from ________.
Correct Answer
Stores Dept.
Your Answer
Stores Dept.

Multiple Choice Single Answer
Question
Competitive price information must be treated as confidential and should not be disclosed to the bidders with an intention of allowing them to rebid is :-
Correct Answer
Improprieties of bids
Your Answer
Price disclosure

Select The Blank
Question
Good ________ relations are necessary for effective materials planning as every department is involved in materials planning because each department requires one item or other another.
Correct Answer
Departmental
Your Answer
Departmental

Multiple Choice Multiple Answer
Question
The following are the actions would help to improve effectiveness of materials planning :-
Correct Answer
Accurate forecasting , Computerization , Shorter materials plan period
Your Answer
Accurate forecasting , Computerization , Shorter materials plan period

Match The Following
Question
Correct Answer
Your Answer
JE
Journal Entries
Journal Entries
PO
Purchase order
Purchase order
GRN
Goods receipt note
Goods receipt note
DN
Discrepancy note.
Discrepancy note.

True/False
Question
Cancellation of orders on flimsy ground is unethical.
Correct Answer
True
Your Answer
True

Select The Blank
Question
Standardized containers eliminates ________
Correct Answer
Transit damage
Your Answer
Transit damage

Multiple Choice Single Answer
Question
Purchase order offers acceptance and have been clearly laid down in :-
Correct Answer
Indian Contract act 1872
Your Answer
Indian Contract act 1872

Multiple Choice Single Answer
Question
For the inspection of Stationery which department is responsible?
Correct Answer
Stores
Your Answer
Stores

Match The Following
Question
Correct Answer
Your Answer
FAS (4-2)
Sale at the port of destination
Sale at port of export
FOB (1-1)
Sale is made on FOB vessel
Sale is made on FOB vessel
CIF (2-4)
Sale is made at port of destination
Sale at the port of destination
CFR (3-3)
Sale at port of export
Sale is made at port of destination

Multiple Choice Single Answer
Question
Reprocessing of Scrap is :-
Correct Answer
Reclaiming for re-use
Your Answer
Reclaiming for re-use

Multiple Choice Single Answer
Question
Limit gauges are used to verify :-
Correct Answer
Whether the product is within the specification
Your Answer
Whether the product is within the specification

Multiple Choice Single Answer
Question
Which of the following is not the internal factor influencing materials planning?
Correct Answer
International market
Your Answer
International market

Multiple Choice Single Answer
Question
The system should be designed in such a way that it serves the advantages that are expected to accrue from it, is called as :-
Correct Answer
Objective oriented
Your Answer
Objective oriented

Multiple Choice Single Answer
Question
Real creative ideas results :-
Correct Answer
When members ventures into impossible areas
Your Answer
When opportunity is given to staff

Multiple Choice Multiple Answer
Question
Segregation of scrap means :-
Correct Answer
Sorting by type, size, grade etc. , Sorting by grade, weight
Your Answer
Sorting by type, size, grade etc. , Sorting by grade, weight

Select The Blank
Question
________clause should be inserted in the purchase order of items critical to project to induce supplier for early completion of the orders.
Correct Answer
Bonus
Your Answer
Penalty for delay

True/False
Question
Single tender system is used when there is only one supplier of the item.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Following are benefits of scientific stoke management :-
Correct Answer
Reduction in downtime by efficient issues , Inventory control , Very less time required to identify & issue material
Your Answer
Reduction in downtime by efficient issues , Inventory control , Very less time required to identify & issue material

True/False
Question
Stores is the "Safe Custody" for keeping materials
Correct Answer
True
Your Answer
True

True/False
Question
Value analysis is the cost reduction technique.
Correct Answer
True
Your Answer
True

True/False
Question
Codification avoids confusion and doubt caused by long description of items.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Complaints concerning should be made in such a way that negative reactions are avoided such as :-
Correct Answer
Delivery failures , Rejection , Shortages
Your Answer
Delivery failures , Rejection , Shortages

True/False
Question
A firm engaged in custom-built-product, is usually plagued with obsolete material.
Correct Answer
True
Your Answer
True

Select The Blank
Question
________ refers to the procurement of the requirements of all departments of the firm by a central purchase organization.
Correct Answer
Centralisation
Your Answer
Centralisation

Multiple Choice Multiple Answer
Question
Conventional machine set-up time includes :-
Correct Answer
Tool replenishment , First piece inspection
Your Answer
Tool replenishment , First piece inspection , Set-up

Multiple Choice Multiple Answer
Question
Stock-out is due to :-
Correct Answer
Unusual high demands , Delay in deliveries
Your Answer
Unusual high demands , Delay in deliveries , Machine break-down

True/False
Question
Negotiation should end up with an unhappy supplier.
Correct Answer
False
Your Answer
False

Select The Blank
Question
Systematic, formal and continuous analysis of all factors affect ________ management function is known as Materials research.
Correct Answer
Materials
Your Answer
Materials

True/False
Question
Since stock-taking is a check on storekeeper, it should not be conducted by him.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Salient features of the working of the price panel are as under :-
Correct Answer
Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the secretary of the price panel , Members of the panel meet to scrutinize and discuss the cost aspects.
Your Answer
Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the secretary of the price panel , Members of the panel meet to scrutinize and discuss the cost aspects.

Multiple Choice Multiple Answer
Question
Application for an import license must be signed from :-
Correct Answer
Proprietor , Partner of firm , Person duly authorized by board of directors of company
Your Answer
Proprietor , Partner of firm , Person duly authorized by board of directors of company

True/False
Question
Manual inspection is economical when volume of output is small.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
For large organizations where product is made up of assemblies of manufactured components raw material store is subdivided into :-
Correct Answer
Foundry store , Tool crib , Maintenance store
Your Answer
Foundry store , Tool crib , Goods inward store

True/False
Question
Post parcel consignments are cleared through customs & clearance is done through foreign post office.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
What is the meaning of discharge of contract by novation?
Correct Answer
If the parties agree to substitute a new contract in place of existing one or alter it, original contract is discharged
Your Answer
If the parties agree to substitute a new contract in place of existing one or alter it, original contract is discharged

Select The Blank
Question
Quantity delivered of goods must be according to the ________.
Correct Answer
Terms of contract
Your Answer
Terms of contract

Multiple Choice Single Answer
Question
Which of the following is not the external factor influencing materials planning?
Correct Answer
Corporate objective
Your Answer
Corporate objective

Materials Management - 2

LIST OF ATTEMPTED QUESTIONS AND ANSWERS



True/False
Question
In fixed-order interval system, order interval is fixed.
Correct Answer
True
Your Answer
True

True/False
Question
Pre-fixed qty. issue system is suitable for A-class items.
Correct Answer
False
Your Answer
True

Select The Blank
Question
________ find their use in identification of raw materials, lubricants, pipelines etc.
Correct Answer
Colour codes
Your Answer
Colour codes

Select The Blank
Question
Two-bin system supersedes ________.
Correct Answer
Perpetual inventory
Your Answer
Variable inventory

Multiple Choice Multiple Answer
Question
In F.O.R. contract seller is responsible for :-
Correct Answer
Arranging for movement of goods to the transporter's godown , Safe loading on into the vehicle , Keeping the material in deliverable state
Your Answer
Paying for the local transport , Arranging for movement of goods to the transporter's godown , Safe loading on into the vehicle

Multiple Choice Single Answer
Question
Organization decided to import when :-
Correct Answer
Item is not available in the country
Your Answer
Item is not available in the country

Multiple Choice Single Answer
Question
The purchasing made under contract , usually formal, of needed materials, the delivery of which is frequently spread over a period of time is known as :-
Correct Answer
Contract buying
Your Answer
Contract buying

Multiple Choice Multiple Answer
Question
Internal lead time can be reduced :-
Correct Answer
By selectively delegating the powers , By developing local vendor
Your Answer
By selectively delegating the powers , By developing local vendor , By better paper-work

True/False
Question
Telephonic quotations are useful when there is limited competition.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The point of transfer of ownership rights from seller to buyer is :-
Correct Answer
Place of delivery
Your Answer
Spare part and supply contracts

Multiple Choice Single Answer
Question
Prices of certain commodity may be fixed by the government and thereby putting a restriction on both buyer and seller is :-
Correct Answer
Government restrictions
Your Answer
Government restrictions

Match The Following
Question
Correct Answer
Your Answer
Review period
Order interval
Two-bin system
FOQ system
B-class items
B-class items
Reduction in record-keeping
Two-bin system
Order interval
Fixed-Order Interval system
Fixed order interval
Fixed order interval

Select The Blank
Question
Average inventory in any replenishment system is ________ to sum of minimum & maximum stock.
Correct Answer
Equal
Your Answer
Steady

Multiple Choice Multiple Answer
Question
Following are distinguishing features of Air consignment :-
Correct Answer
No system of prior entry , 3 free days are allowed from flight date
Your Answer
No system of prior entry , 3 free days are allowed from flight date , All rules are same for Air & Sea consignment

Multiple Choice Multiple Answer
Question
Typical examples of direct materials are :-
Correct Answer
Cloth in the manufacture of garment , Wood in the manufacture of furniture , Fruits in a canning industry
Your Answer
Cloth in the manufacture of garment , Wood in the manufacture of furniture , Fruits in a canning industry

True/False
Question
Cost of capacity which may be rendered idle if the item currently being manufactured in purchased needs to be added to the cost to buy.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Following special schemes are announced by Indian Government under which import can be permitted at zero duty or at less duty :-
Correct Answer
Export promotion capital goods scheme , Diamond &Jewellary promotion scheme , Import by 100% export oriented units
Your Answer
Export promotion capital goods scheme , Diamond &Jewellary promotion scheme

Multiple Choice Single Answer
Question
Government departments and public sector undertakings in India follow this method of buying :-
Correct Answer
Tender buying
Your Answer
Blanket orders

Match The Following
Question
Correct Answer
Your Answer
Right place
Delivery as per contract
Delivery as per contract
Buyers right
Examine the goods
Examine the contract
Unpaid sellers right
Of lien
Attack on buyers property
Delivery
Transfer of ownership rights from seller to the buyer
Of lien

Select The Blank
Question
Acceptance sampling plans have been evolved ________.
Correct Answer
Based on probability theory
Your Answer
Based on probability theory

True/False
Question
Purchase cost is the price paid the supplier
Correct Answer
True
Your Answer
True

True/False
Question
Esteem value is paid by the supplier.
Correct Answer
False
Your Answer
True

True/False
Question
Vendors are not responsible for statutory approvals from government authorities.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
Advantages of fixed price agreements are :-
Correct Answer
They are easy to administer , They give certainty to the buyer who knows from the start, amount he has to pay for the goods/services. , They protect buyer from possible financial risks from price escalations
Your Answer
They are easy to administer , They give certainty to the buyer who knows from the start, amount he has to pay for the goods/services. , They protect buyer from possible financial risks from price escalations

Multiple Choice Single Answer
Question
The threat on the part of supplier to hold supplies until favourable price decisions is :-
Correct Answer
Ability to hold on price
Your Answer
Ability to hold on price

Select The Blank
Question
Finished parts are called as ________.
Correct Answer
Bought-out parts
Your Answer
Auxillary parts

Select The Blank
Question
Tendering in the absence of negotiations is also called ________.
Correct Answer
Firm bidding
Your Answer
Schedule buying

Multiple Choice Multiple Answer
Question
Special stores are created where :-
Correct Answer
Material need to be held under the control of the bank , Material need to be held for perishable items , Material need to be held for explosive & inflammable items
Your Answer
Material need to be held under the control of the bank , Material need to be held for perishable items , Material need to be held for costly items

Multiple Choice Single Answer
Question
What is the identification & location of stock in store?
Correct Answer
Formulating & updating a system of stores and coding to items which should ensure efficient identification & location of goods.
Your Answer
Formulating & updating a system of stores and coding to items which should ensure efficient identification & location of goods.

Multiple Choice Single Answer
Question
The inventories which refer to the maintenance, repair and operation supplies which are consumed during process of manufacturing but do not become part of the product is :-
Correct Answer
MRO inventories
Your Answer
In process inventories

True/False
Question
Noting clerk examines bill of entry papers & if found in order signs the bill of entry.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The organization set up by FAO & WHO to evolve food standards :-
Correct Answer
Codex Alimentarious commission
Your Answer
Codex Alimentarious commission

Multiple Choice Multiple Answer
Question
Salient features of the working of the price panel are as under :-
Correct Answer
Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the secretary of the price panel , Members of the panel meet to scrutinize and discuss the cost aspects.
Your Answer
Usage value above which the panel is to approve of the price is specified. , Vendor development department is required to give cost break up to the secretary of the price panel , Members of the panel meet to scrutinize and discuss the cost aspects.

Multiple Choice Single Answer
Question
The method used for making purchases of proprietary items is :-
Correct Answer
Single tender
Your Answer
Open tender

Select The Blank
Question
All incoming materials are insured against ________
Correct Answer
Damage / loss
Your Answer
Value of material

Multiple Choice Multiple Answer
Question
Disadvantages of forward buying are :-
Correct Answer
Such a buying may not serve entirely the needs of the production department , Price expectations if not realised may result in major financial loss to the firm. , Large scale obsolescence may result if design changes occur.
Your Answer
Such a buying may not serve entirely the needs of the production department , Price expectations if not realised may result in major financial loss to the firm. , Inventory holding charges are lower.

True/False
Question
Lead time information is required for determination of safety stock.
Correct Answer
False
Your Answer
True

True/False
Question
Fire extinguishers should be very near to staff members.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
In Ex-works contract buyer is responsible for :-
Correct Answer
Arranging for transport including loading on to the vehicle at supplier's works , Paying for freight , Arranging for transit insurance
Your Answer
Keeping the material in deliverable state , Arranging for transport including loading on to the vehicle at supplier's works

Multiple Choice Single Answer
Question
Sales returns means :-
Correct Answer
Receipt of goods from Customer
Your Answer
Rejection of goods

Select The Blank
Question
Cost of special tooling is called as ________.
Correct Answer
Cost to buy
Your Answer
Cost to buy

Select The Blank
Question
________ is followed in public sector organizations to identify the lowest potential bidder.
Correct Answer
Tender system
Your Answer
Tender system

Select The Blank
Question
Stock-out is nothing but ________.
Correct Answer
Stock get depleted before receipt
Your Answer
Nil stock

Multiple Choice Single Answer
Question
The orders, to the extent possible should be avoided is called as :-
Correct Answer
Rush
Your Answer
Rush

Multiple Choice Multiple Answer
Question
Deterioration of electrodes causes :-
Correct Answer
Increase in arc instability , Excessive spatter
Your Answer
Increase in arc instability , Excessive spatter , High smoke while using

Multiple Choice Multiple Answer
Question
Following agreement have been expressly declared void as per the Indian Contract Act 1872 :-
Correct Answer
Agreement in restraint of marriage , Agreement by way of wages , Agreements to do impossible acts
Your Answer
Agreement in restraint of marriage , Agreements in restraints of business , Agreement by way of wages

Select The Blank
Question
Systematic ________of stores is the key to its efficient operation.
Correct Answer
Layout
Your Answer
Layout

Materials Management - 1

Multiple Choice Multiple Answer
Question
Primary duties to be performed by purchase department are :-
Correct Answer
Receipts, sorting of purchase indents and determination of method of buying , Performance evaluation and feedback , Search for suppliers
Your Answer
Search for suppliers , Receipts, sorting of purchase indents and determination of method of buying , Performance evaluation and feedback

True/False
Question
Indentor's copy is meant to enable indentor to follow up with the purchase department.
Correct Answer
True
Your Answer
True

Select The Blank
Question
________specification are usually flexible and can be altered during consultation with different manufacturers of the equipment.
Correct Answer
Equipment
Your Answer
Equipment

Multiple Choice Single Answer
Question
Second bin quantity can be qualified by :-
Correct Answer
m + L x C
Your Answer
m + L x C

True/False
Question
Continuous stock-taking tends to dislocate the working of store.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Redundant Stock is nothing but :-
Correct Answer
Worthless for conversion & other use
Your Answer
Worthless for conversion & other use

Multiple Choice Single Answer
Question
The cost incurred in providing adequate insurance cover to the materials in transit and in storage is
Correct Answer
Insurance cost
Your Answer
Insurance cost

Select The Blank
Question
Set-up cost for manufactured item in own plant is ________.
Correct Answer
Very high
Your Answer
Very high

Multiple Choice Single Answer
Question
The buying which is received in staggered lots, each lot at times may equal EOQ is :-
Correct Answer
Contract buying
Your Answer
Schedule buying

Multiple Choice Single Answer
Question
Price of the commodity is conditioned by the forces of supply and demand is :-
Correct Answer
Demand and supply condition
Your Answer
Demand and supply condition

Multiple Choice Single Answer
Question
The submission of the final offers by the prospective sources is :-
Correct Answer
Firm bidding
Your Answer
Firm bidding

Select The Blank
Question
________ of the department refers to the placement of the department in the structure of the company.
Correct Answer
Status
Your Answer
Size

Select The Blank
Question
Paper work cost is ________.
Correct Answer
Procurement cost
Your Answer
Procurement cost

True/False
Question
The trade discount is not allowed as a percentage of published price.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
What are the different methods of identifying materials?
Correct Answer
Tagging , Labeling , Engraving
Your Answer
Tagging , Labeling , Engraving

Multiple Choice Single Answer
Question
Prices of certain commodity may be fixed by the government and thereby putting a restriction on both buyer and seller is :-
Correct Answer
Government restrictions
Your Answer
Government restrictions

True/False
Question
Multiple sampling is an extension of the double sampling plan.
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
Labour management relations
Investigating into suppliers capabilities
Investigating into suppliers capabilities
Technical discussions between the representatives of a buyer and supplier
Techno commercial discussion and trial order
Techno commercial discussion and trial order
Follow up with the supplier until sample submission
Sample validation
Sample validation
Type of supplier
Preliminary selection of the suppliers
Preliminary selection of the suppliers

Select The Blank
Question
Review system-optional replenishment is a modification of ________.
Correct Answer
Fixed-order interval system
Your Answer
Re-order level system

Multiple Choice Multiple Answer
Question
Costs involved in materials management are
Correct Answer
Basic cost of materials , Government tax and levies , Ordering cost
Your Answer
Basic cost of materials , Government tax and levies , Ordering cost

True/False
Question
Safety stock forms a fixed portion of inventories.
Correct Answer
True
Your Answer
True

True/False
Question
Maintenance and repair costs in used equipments are relatively higher.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
What are the areas of control to improve profit
Correct Answer
Increase units sold , Increase production , Reducing capital
Your Answer
Increase units sold , Increase production , Reducing capital

Multiple Choice Multiple Answer
Question
Main transport documents used by trade are :-
Correct Answer
RR , LR
Your Answer
RR , LR

Multiple Choice Single Answer
Question
Quantity based advance license is based on standard of :-
Correct Answer
Input-output norms fixed by ALC
Your Answer
Input-output norms fixed by ALC

Select The Blank
Question
Originating department of daily material receipt report is ________.
Correct Answer
Receiving store
Your Answer
Purchase department

Multiple Choice Multiple Answer
Question
What are the limitations of alpha betical system?
Correct Answer
Repetition of alphabets often leads to confusion and wrong identification , The selection of proper alphabets for each of the items is difficult. , The codes cannot be amplified which restricts its use to smaller firms
Your Answer
Repetition of alphabets often leads to confusion and wrong identification , The selection of proper alphabets for each of the items is difficult. , The codes cannot be amplified which restricts its use to smaller firms

True/False
Question
Small parcels, Samples, gifts which are received from other countries provisions of import policy & customs not applied on them.
Correct Answer
False
Your Answer
False

Select The Blank
Question
Malpractices are ________.
Correct Answer
Manipulations by stores staff
Your Answer
Common in all stores

True/False
Question
The registered firms are required to submit security deposit which is required from unregistered firms.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
In instantaneous replenishment system :-
Correct Answer
Item consumption demand rate is constant
Your Answer
Item consumption demand rate is constant

Multiple Choice Multiple Answer
Question
Store manager has to ensure security :-
Correct Answer
Of store buildings , Of stock yards
Your Answer
Of store buildings , Of stock yards , Of stores staff

Multiple Choice Single Answer
Question
The process of procurement of raw material, wip, finished goods, jigs, fixtures and other tools and equipments which are required for the operation and maintenance of a manufacturing plant is known as
Correct Answer
Purchasing
Your Answer
Purchasing

Multiple Choice Multiple Answer
Question
Receiving inspector should have to :-
Correct Answer
Segregate defectives , Maintain vendor wise quality records
Your Answer
Segregate defectives , Maintain vendor wise quality records

Multiple Choice Single Answer
Question
Identifying the need for source selection and source development is :-
Correct Answer
Source requirement stage
Your Answer
Source requirement stage

True/False
Question
Supplier's delivery ratings should be communicated on periodical basis.
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
Vendor rating
Right source
Right source
Replenishment method
Right time
Right time
Competitive bidding
Right price
Right price
EOQ
Right quantity
Right quantity

Multiple Choice Single Answer
Question
EOQ means :-
Correct Answer
When total cost & right quantity are balanced
Your Answer
When total cost & right quantity are balanced

Multiple Choice Single Answer
Question
The cost incurred in movement of materials from suppliers works to buyer's works is
Correct Answer
Freight cost
Your Answer
Freight cost

Multiple Choice Multiple Answer
Question
Value analysis speaks about :-
Correct Answer
Cost improvement , Improvement in quality
Your Answer
Cost improvement , Improvement in quality

Multiple Choice Multiple Answer
Question
Advantages of fixed price agreements are :-
Correct Answer
They are easy to administer , They give certainty to the buyer who knows from the start, amount he has to pay for the goods/services. , They protect buyer from possible financial risks from price escalations
Your Answer
They are easy to administer , They give certainty to the buyer who knows from the start, amount he has to pay for the goods/services. , They protect buyer from possible financial risks from price escalations

Multiple Choice Multiple Answer
Question
Main information in the bill of material is :-
Correct Answer
Part no. , Material specification , Quantity per assembly
Your Answer
Part no. , Material specification

Select The Blank
Question
________ is responsible for purchase of goods of right quality, quantity, time, price and source.
Correct Answer
Purchase division
Your Answer
Purchase division

Multiple Choice Single Answer
Question
The system not only should identify and classify all the existing items and it should have enough extra unassigned codes to absorb future items is called as :-
Correct Answer
Flexibility
Your Answer
Flexibility

Multiple Choice Single Answer
Question
Purchasing today is no longer just a commercial activity but it is a techno commercial activity. This is known as :-
Correct Answer
Changing nature of purchases
Your Answer
Changing nature of purchases

True/False
Question
Black listing may be for a limited period or for an indefinite period.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Actions involved in sample validation are :-
Correct Answer
Follow up with the supplier until sample submission , Sample inspection , Feedback on defects and defect prevention
Your Answer
Sample inspection , Sample rejection

Techniques for Operations Efficiency - 5

Multiple Choice Multiple Answer
Question
TQM can never flourish if the staff are:-
Correct Answer
Scared of their bosses , Worried about losing jobs , Afraid of being reprimanded if there are mistakes
Your Answer
Scared of their bosses , Worried about losing jobs , Afraid of being reprimanded if there are mistakes

Multiple Choice Single Answer
Question
Quality problem solving tool is used to :-
Correct Answer
Improve quality
Your Answer
Improve quality

Multiple Choice Single Answer
Question
The concept of quality circle was mooted by :-
Correct Answer
Prof. Kaoishikawa
Your Answer
Prof. Kaoishikawa

Match The Following
Question
Correct Answer
Your Answer
SMED
Setup time reduction
Setup time reduction
5 'S
Cleanliness
Total productive maintenance
Muda elimination
Waste elimination
Waste elimination
Poka-Yoke
Error proofing
Error proofing

Multiple Choice Single Answer
Question
Allowing worker's to stop machine / assembly line if they believe that product quality is below standard' is an example of :-
Correct Answer
Empowerment
Your Answer
Involvement

Select The Blank
Question
Kaizen is ________ supported process.
Correct Answer
Management
Your Answer
Workmen

Select The Blank
Question
Ratio of ________ to the number of pieces inspected is called fraction defectives.
Correct Answer
Number of item rejected
Your Answer
Number of item rejected

Multiple Choice Single Answer
Question
Histogram always indicates :-
Correct Answer
Only height
Your Answer
Percentage defect

Multiple Choice Single Answer
Question
List of customers, to carry out parato analysis to identify customers who gives business includes :-
Correct Answer
Present & past customers
Your Answer
Present & past customers

Multiple Choice Single Answer
Question
Implication of Quality problem is:-
Correct Answer
Gap in performance
Your Answer
Gap in performance

Multiple Choice Multiple Answer
Question
Steps to six sigma process consists of :-
Correct Answer
Identify the work you do , Identify your customers , Map the process
Your Answer
Identify the work you do , Identify your customers , Map the process

Multiple Choice Single Answer
Question
From scatter diagram the strength of relationship between two variables or associated set of data can be inferred from the examination of the shape of :-
Correct Answer
Cloud
Your Answer
Cloud

True/False
Question
Non-availability of files /document in time is a problem to be addressed by office TPM.
Correct Answer
True
Your Answer
True

Select The Blank
Question
________ used to detect drop in air pressure.
Correct Answer
Buzzers / alarms
Your Answer
Locators

Multiple Choice Single Answer
Question
TQM is a way to improve quality of product and service :-
Correct Answer
Continuously
Your Answer
Continuously

Multiple Choice Multiple Answer
Question
The aim of education & training under TPM is :-
Correct Answer
To develop abilities to respond quickly to abnormalities , To develop abilities to discover analyze malfunction
Your Answer
To develop abilities to respond quickly to abnormalities , To develop abilities to discover analyze malfunction , To have multiskilled employees in all departments

Match The Following
Question
Correct Answer
Your Answer
In scatter diagram, the strength of relationship can be determined
By "correlation coefficient"
By "correlation coefficient"
The scatter diagram provides the technique to establish
The possible relationship between a pair of variables
The possible relationship between a pair of variables
The scatter diagram displays
The pair of data as a cloud of points
The pair of data as a cloud of points
The scatter is also known as
Correlation diagram
Correlation diagram

True/False
Question
Flow chart is pictorial representation of the steps in production control.
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
Pareto's analysis underlines & operates philosophy of :-
Correct Answer
Vital few = trivial many
Your Answer
Vital few = trivial many

Multiple Choice Single Answer
Question
Pareto diagram always indicate magnitude of :-
Correct Answer
Defect
Your Answer
Influence of defect

True/False
Question
By cutting the cost of quality, profitability decreases.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Check sheet is easy to use because it is :-
Correct Answer
Simplest tool
Your Answer
Simplest tool

True/False
Question
The flow charts are prepared to enhance the employees understanding of the process by indicating interrelationship within the process.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Abnormal variations can occur if :-
Correct Answer
There are assignable causes
Your Answer
There are assignable causes

Multiple Choice Multiple Answer
Question
Types of Poka-Yoke are :-
Correct Answer
Prevention type Poka-Yoke , Detection type Poka-Yoke
Your Answer
Prevention type Poka-Yoke , Detection type Poka-Yoke , Standards type Poka-Yoke

True/False
Question
Control limits of control charts should be revised from time to time as additional data is accumulated.
Correct Answer
True
Your Answer
True

Select The Blank
Question
Kaizen is an excellent method to involve ________ to unearth & eliminate hidden waste.
Correct Answer
Employees
Your Answer
Employers

Multiple Choice Multiple Answer
Question
To reduce Muda of transport, techniques used are :-
Correct Answer
Cellular layout , Method study , 5 'S
Your Answer
Cellular layout , Method study , 5 'S

Select The Blank
Question
Cp for six sigma process is ________
Correct Answer
2
Your Answer
2

Select The Blank
Question
________ participants in monthly meeting(MRM)
Correct Answer
GM, operation heads, corporate functional heads
Your Answer
Department heads & supervisors

True/False
Question
Processing cost of a product is mainly decided by conversion process.
Correct Answer
True
Your Answer
True

Select The Blank
Question
Production in last shift & production plan for next shift is discussed during ________.
Correct Answer
Shift beginning & shift end/change meeting
Your Answer
Shift beginning & shift end/change meeting

Multiple Choice Multiple Answer
Question
Material Supply on DSL basis helps :-
Correct Answer
To eliminate handling , To reduce transporting , To reduce inspection
Your Answer
To eliminate handling , To reduce transporting , To reduce inspection

True/False
Question
Inadequate maintenance of machine leads to muda of defects
Correct Answer
True
Your Answer
True

True/False
Question
Most of the external setups are treated as internal setup.
Correct Answer
True
Your Answer
False

Multiple Choice Multiple Answer
Question
Benefits from SMED are :-
Correct Answer
Reduce work in process , Better average daily production , Increase capacity
Your Answer
Reduce work in process , Better average daily production , Increase capacity

Multiple Choice Multiple Answer
Question
Typical examples of process benchmark are :-
Correct Answer
Procurement procedures , Budgeting , Recruitment
Your Answer
Procurement procedures , Budgeting , Recruitment

True/False
Question
Low level of delegation is an example of muda in office.
Correct Answer
True
Your Answer
False

Multiple Choice Multiple Answer
Question
Histograms are useful to :-
Correct Answer
Measure the current pattern & extent of variation , Assess current conformance to specification & scope of improvement , Determine whether or not the process is in the state of control
Your Answer
Measure the current pattern & extent of variation , Assess current conformance to specification & scope of improvement , Determine whether or not the process is in the state of control

Multiple Choice Multiple Answer
Question
While preparing scatter diagram following precautions are to be taken :-
Correct Answer
Data should be properly stratified & should be collected for full range , Scale selected should be right to avoid wrong conclusions , Data should be free from bias or undue importance
Your Answer
Data should be properly stratified & should be collected for full range , Scale selected should be right to avoid wrong conclusions , Data should be free from bias or undue importance

Multiple Choice Single Answer
Question
Through continuous improvement in the process & procedures, kobetsu-kaizen is continuously improve utilization of :-
Correct Answer
Worker, equipment & material
Your Answer
Workers & materials

True/False
Question
Every department should make their own rules of standardization.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Quality circle should consist adequate experienced members between :-
Correct Answer
8 to 10
Your Answer
8 to 10

Multiple Choice Single Answer
Question
Number of kaizen in Group kaizen categories are :-
Correct Answer
Two to three per year
Your Answer
As many as management decides

Select The Blank
Question
Flow chart helps to provide clarity of the ________ without visiting actual spot.
Correct Answer
Process
Your Answer
Process

Multiple Choice Single Answer
Question
Gap in performance = Ideal situation minus :-
Correct Answer
Current situation
Your Answer
Current situation

Select The Blank
Question
Seminar talks and video show are organized to introduce TPM concept to ________
Correct Answer
General employees
Your Answer
General employees