SS1 Third Term Store Management Past Questions And Answers (Objective and Theory)

 

Senior Secondary School 1 (SS1) third term store management, including multiple-choice questions with options and answers, along with theory questions for Section B.

 

Section A: Multiple-Choice Questions

What is the primary purpose of a perpetual inventory system in store management?

 

A) Monthly stocktaking

B) Continuous tracking of stock levels

C) Yearly audit

D) Random stock checks

Answer: B) Continuous tracking of stock levels

 

Which inventory costing method assumes that the cost of goods sold is based on the most recent purchase costs?

 

A) FIFO

B) LIFO

C) Weighted Average

D) Specific Identification

Answer: B) LIFO (Last In, First Out)

 

In store management, what does the term “Stockout” refer to?

 

A) Overstocked inventory

B) Running out of stock

C) Inventory turnover ratio

D) Stock tracking system

Answer: B) Running out of stock

 

Which document is used to record the quantity of goods sent from a supplier to a buyer?

 

A) Invoice

B) Delivery note

C) Purchase order

D) Bill of lading

Answer: B) Delivery note

 

What is the purpose of a stock reorder point in inventory management?

 

A) To prevent stockouts

B) To expedite order processing

C) To reduce carrying costs

D) To monitor employee productivity

Answer: A) To prevent stockouts

 

In the context of inventory management, what does EOQ stand for?

 

A) Economic Order Quantity

B) Effective Order Quantity

C) Excess Order Quantity

D) Efficient Order Quantity

Answer: A) Economic Order Quantity

 

Which factor is considered in the Economic Order Quantity (EOQ) formula?

 

A) Carrying costs

B) Lead time demand

C) Safety stock level

D) Order processing time

Answer: A) Carrying costs

 

What is the purpose of cycle counting in store management?

 

A) Monthly stocktaking

B) Continuous tracking of stock levels

C) Yearly audit

D) Random stock checks

Answer: B) Continuous tracking of stock levels

 

Which inventory valuation method involves using the average cost of all units available for sale during the period?

 

A) FIFO

B) LIFO

C) Weighted Average

D) Specific Identification

Answer: C) Weighted Average

 

What is the primary goal of implementing RFID technology in store management?

 

A) Pricing accuracy

B) Employee identification

C) Inventory tracking

D) Customer entertainment

Answer: C) Inventory tracking

 

What is the purpose of a perpetual inventory system in store management?

 

A) Monthly stocktaking

B) Continuous tracking of stock levels

C) Yearly audit

D) Random stock checks

Answer: B) Continuous tracking of stock levels

 

Which document is used to authorize the return of defective goods to a supplier?

 

A) Invoice

B) Credit note

C) Purchase order

D) Debit note

Answer: B) Credit note

 

In store management, what is the significance of the ABC analysis method in inventory control?

 

A) Determining lead time

B) Classifying items based on importance

C) Calculating reorder points

D) Assessing carrying costs

Answer: B) Classifying items based on importance

 

What is the purpose of a perpetual inventory system in store management?

 

A) Monthly stocktaking

B) Continuous tracking of stock levels

C) Yearly audit

D) Random stock checks

Answer: B) Continuous tracking of stock levels

 

Which inventory management technique focuses on maintaining low inventory levels to minimize holding costs?

 

A) JIT system

B) ABC analysis

C) EOQ model

D) Safety stock calculation

Answer: A) JIT (Just-In-Time) system

 

Explain the term “Stockout” in the context of inventory management, and discuss its impact on a retail business.

 

Discuss the role of technology in preventing and managing stockouts in store management. Provide examples of technological solutions that enhance inventory control.

 

Explain the importance of accurate demand forecasting in store management. How does it contribute to effective inventory management and customer satisfaction?

 

Discuss the potential risks and challenges associated with implementing RFID technology in store management.

 

Explain the significance of cycle counting in inventory management and how it differs from traditional stocktaking methods.