Score1.

00of 1

29th bol

1. Tandon Committee gave recommendations for inventory norms for:

15 major industries

25 industries
All trading and manufacturing industries
Only food processing industries
Score1.00of 1

2. The inventory level should match with:

The level of activity
The level of sales
Production cycle
All the above
Score1.00of 1

3. Safety Inventory refers to:

The inventory kept in the safe deposit custody
The inventory maintained to meet the unforeseen, for example, sudden spurt of demand

The inventory which is kept safely in the warehouses and not used
The inventory which is protected from fire and other such hazards
Score1.00of 1

4. In which Monetary and Credit Policy, RBI declared that compliance with
holding norms is optional?
1996-97

1997-98

1998-99
2000-01
Score1.00of 1

5. Why do holding norms exist?

To ensure action against unnecessary or unwarranted excess finance
To ensure that the bank finance is not misused for unproductive purposes
None of the above
Both options A and B
Score1.00of 1

6. The holding period of Finished Goods is expressed in terms of :

Cost of sales

Cos of production
Cost of purchase
Cost of consumption
Score1.00of 1

7. In case of Stock in Process, the holding period is expressed in terms

of:
Months of cost of sales
Months of cost of production

Months of sales

Months of consumption of Raw Materials

Score1.00of 1

8. In case of Raw Materials, the holding period is expressed in terms of:

Months of purchase of Raw Materials
Months of consumption of Raw materials

Months of sales of Finished Goods

Months of cost of sales of Finished Goods
Score1.00of 1

9. Inventory and receivable norms are applicable to:

Raw Materials only
All types of inventory such as Raw Materials, Stock in Process, and Finished Goods

Finished Goods only

Stock in Process only
Score1.00of 1

10. Excessive Inventory means:

Excess of normal inventory on account of factors like seasonality, bulk order quantity and/or
minimum order level, and so on

The inventory maintained in excess of the production needs without any purpose
The inventory which is a waste

The inventory in excess of the normal requirements to make profits on account of market situ