Q. Purchase Budget has an impact on
✅ Correct Answer: (D)
All of these
Cost and Works Accounting 1 MCQs and Notes
Q. “Hedging” technique is used
✅ Correct Answer: (C)
Both (a) and (b)
Q. JIT contributed to the
✅ Correct Answer: (A)
Reduced inventories and WIP
Q. The objective(s) of forward purchasing is / are
✅ Correct Answer: (A)
To guard against interruption in supply
Q. The purchase order form is designed by
✅ Correct Answer: (B)
Purchase Manager
Q. Which of the following is not a function of purchasing management?
✅ Correct Answer: (D)
None of these
Q. Which one of the following is not included in the 5 R in purchasing?
✅ Correct Answer: (D)
None of these
Q. A bilateral RFP is preferred to an invitation to bid when:
✅ Correct Answer: (C)
The product or service has high value and is unique
Q. Definitive contract terms are spelled out in the:
✅ Correct Answer: (C)
Post-award phase
Q. The contract is signed at the end of the:
✅ Correct Answer: (D)
Award cycle