NPTEL Course Working Capital Management Assignment V QI. Cost(s) associated to managing inventory may be: a) Carrying costs b) Ordering, shipping and receiving costs ©) Stock-out costs «Any of the above Q2. Which of the followings explain the inventory behavior better? a) a) High inventory + low prices > cut-back on production — low opening inventory, b) b) Low inventory —> low prices —> cut-back on production —+ low opening inventory ©) ©) High inventory — high prices + cut-back on production — low opening inventory d) d) High inventory > low prices > cut-back on production — high opening inventory Q3. In any manufacturing firm, Inventory accumulates due to: a) No perfect markets b) No efficient production-distributive systems ©) Imperfections create fluctuations of various dimensions 4) All of the above Q4. In the state of rising prices in any economy/market which method of inventory valuation will be appropriate? a) FIFO b) LIFO c) Average cost method d) Adjusted selling price method QS. Choice of method of inventory valuation depends on: a) Size and type of organization b) The state of economy ©) Industry practice ) All of the above Q6. Which of the followings may be the prerequisite(s) of an effective inventory strategy?a) Integrated Approach b) Integration of Inventory Functions to Corp. Strategy of Firm ©) Achievement of Ultimate Goal of Sustainable Competitive Advantage ©) All of the above Q7. Cost leadership inventory strategy a) Make to Stock 'b) Mark to stock ©) Assemble to Order 4d) Engineer o order Q8.Focused inventory strategy is: a) Make to Stock b) Assemble to Order ©) Engineer to order d) Any of the above Q9. Which of the followings may be an inventory management technique? a) BOQ b) ABC ©) Justin-time 4) All of the above Q10.Which method of inventory management is helpful in reworking the inventory level if, working capital restrictions are imposed by the bank? a) ABC bv) BOQ ©) Justin-time d) None of the above QIL. In case of working capital restrictions imposed by the bank: 48) The ordering cost may go up and carrying cost may go down b) The ordering cost may go down and carrying cost may go up ) The ordering cost may go up and carrying cost may remain unchanged d) The ordering cost may go up and carrying cost also go up Q12. In case of working capital restrictions imposed by the bank the revised order size may be: a) The order size (in terms of units) will be bigger as compared to the one before any kind of working capital restrictions'b) The order size (in terms of units) will be smaller as compared to the one before any kind ‘of working capital restrictions ©) The order size will remain unchanged @) The order size may be bigger or smaller.