SS2 First Term Store Management Past Questions And Answers (Objective and Theory)

 

Senior Secondary School 2 (SS2) first term store management, along with options and answers:

 

Section A: Multiple Choice

What is the primary purpose of store management?

 

A) Marketing

B) Profit Maximization

C) Cost Reduction

D) Human Resources

Answer: C) Cost Reduction

Which inventory method assumes that the most recently acquired items are sold first?

 

A) LIFO (Last In, First Out)

B) FIFO (First In, First Out)

C) Weighted Average

D) Specific Identification

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

In store management, ABC analysis is used for:

 

A) Employee performance evaluation

B) Inventory classification

C) Customer segmentation

D) Market research

Answer: B) Inventory classification

What is the purpose of safety stock in inventory management?

 

A) To prevent theft

B) To handle unexpected demand fluctuations

C) To reduce carrying costs

D) To monitor employee productivity

Answer: B) To handle unexpected demand fluctuations

Which of the following is a disadvantage of just-in-time (JIT) inventory system?

 

A) Low holding costs

B) High flexibility

C) Dependency on suppliers

D) Reduced stockouts

Answer: C) Dependency on suppliers

The Economic Order Quantity (EOQ) model helps in determining the optimal:

 

A) Order quantity that minimizes total inventory costs

B) Reorder point

C) Lead time

D) Stock turnover ratio

Answer: A) Order quantity that minimizes total inventory costs

What does the term “Stockout” refer to in store management?

 

A) Excess inventory

B) Running out of stock

C) Inventory turnover

D) Shelf space optimization

Answer: B) Running out of stock

Which inventory control technique involves setting maximum and minimum stock levels?

 

A) ABC analysis

B) Just-in-time (JIT)

C) Reorder point method

D) Economic Order Quantity (EOQ)

Answer: C) Reorder point method

What is the main purpose of perpetual inventory system?

 

A) To count physical inventory regularly

B) To record inventory transactions continuously

C) To implement ABC analysis

D) To reduce holding costs

Answer: B) To record inventory transactions continuously

Which of the following is a component of carrying costs in inventory management?

 

A) Ordering costs

B) Holding costs

C) Stockout costs

D) Setup costs

Answer: B) Holding costs

The turnover ratio is calculated as:

 

A) Average inventory / Cost of goods sold

B) Cost of goods sold / Average inventory

C) Sales / Average inventory

D) Average inventory / Sales

Answer: B) Cost of goods sold / Average inventory

What is the primary purpose of a perpetual inventory system?

 

A) To track sales revenue

B) To maintain security in the store

C) To continuously update inventory records

D) To monitor employee attendance

Answer: C) To continuously update inventory records

Which of the following is a disadvantage of centralization in store management?

 

A) Improved control and coordination

B) Faster decision-making

C) Lack of local market knowledge

D) Reduced transportation costs

Answer: C) Lack of local market knowledge

What does the term “Lead time” refer to in inventory management?

 

A) Time taken to place an order

B) Time taken for inventory turnover

C) Time between order placement and receipt of goods

D) Time spent on employee training

Answer: C) Time between order placement and receipt of goods

Which of the following is an advantage of RFID technology in inventory management?

 

A) High implementation costs

B) Limited data storage capacity

C) Real-time tracking

D) Dependency on manual scanning

Answer: C) Real-time tracking

What is the main objective of stock control in store management?

 

A) Maximizing stockouts

B) Minimizing holding costs

C) Maximizing obsolete inventory

D) Minimizing turnover ratio

Answer: B) Minimizing holding costs

Which inventory turnover ratio indicates better efficiency?

 

A) Higher ratio

B) Lower ratio

C) Constant ratio

D) Fluctuating ratio

Answer: A) Higher ratio

What is the purpose of a purchase requisition in store management?

 

A) Authorizing payment

B) Requesting permission to purchase

C) Updating inventory records

D) Monitoring employee performance

Answer: B) Requesting permission to purchase

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

 

A) Fast-moving items

B) Slow-moving items

C) Expired or obsolete items

D) Perishable goods

Answer: C) Expired or obsolete items

Which of the following is a benefit of implementing a barcoding system in store management?

 

A) Increased manual errors

B) Slower checkout process

C) Improved accuracy in inventory tracking

D) Dependency on paper records

Answer: C) Improved accuracy in inventory tracking

Section B: Theory Questions

Explain the concept of ABC analysis in store management and its significance.

 

Discuss the advantages and disadvantages of using just-in-time (JIT) inventory system.

 

Explain the Economic Order Quantity (EOQ) model and its application in inventory management.

 

Describe the importance of stock control in optimizing store management operations.

 

Discuss the role of technology, such as RFID, in enhancing inventory management efficiency.