Purchase Procedure (in Cost and Works Accounting 1) MCQs set 3

Cost and Works Accounting 1

Purchase Procedure [set-3]

51. Right quality means

A. over specifying the quality standards for purchasers

B. under specifying the quality for purchasing

C. buying standard items

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D. Buying quality which suits the needs without incurring extra cost to the company

Answer: D
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52. Purchase order is a legal binding contract only if it is
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A. accepted by the supplier
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C. posted by the buyer

D. none of these

Answer: A

53. The document prepared on receipt of materials in store is known as

A. MRN

B. GRN

C. Challan

D. Bill of materials.

Answer: B

54. The system of purchasing from one’s customer preferred to others is

known as
A. Forward Buying

B. Tender Buying

C. Reciprocal Buying

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 Purchase Procedure (in Cost and Works Accounting 1) MCQs set 3

D. Blanket Order

Answer: C

55. The purchasing view of the material master is relevant at what

organizational level?
A. Company code

B. Client

C. Storage location

D. Plant
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Answer: D
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 Purchase Procedure (in Cost and Works Accounting 1) MCQs set 3

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