113. ___________________ is the scientific technique for planning the ordering and usage of materials at various levels of production and for monitoring the stocks during these transaction.
MPS
MRP
BOM
None of these
Correct answer: (B) MRP
114. Procuring an item in staggering deliveries according to the delivery schedule finished to the supplier by the buyer.
Seasonal Buying
Hand to mouth buying
Scheduled Buying
Tender Buying
Speculative Buying
Correct answer: (C) Scheduled Buying
115. Which of the following statements is not correct regarding earnings per share (EPS) maximization as the primary goal of the firm?
EPS maximization ignores the firm's risk level.
EPS maximization does not specify the timing or duration of expected EPS.
EPS maximization naturally requires all earnings to be retained.
EPS maximization is concerned with maximizing net income.
Correct answer: (D) EPS maximization is concerned with maximizing net income.
116. __________________ is the time that elapses between issuing replenishment order and receiving the material in stores.
Replenishment time
Lead time
Idle time
All of these
Correct answer: (B) Lead time
117. __________________ is concerned with the maximization of a firm's earnings after taxes.
Shareholder wealth maximization
Profit maximization
Stakeholder maximization
EPS maximization
Correct answer: (B) Profit maximization
118. The first activity of Purchasing cycle is
Communicating requirement to the purchase
Source Selection and development
Recognizing the need for procurement
Inspection of goods
Correct answer: (C) Recognizing the need for procurement
119. What is the most appropriate goal of the firm?