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

 

20 multiple-choice questions for Senior Secondary School 2 (SS2) second term store management, along with options and answers:

 

Section A: Multiple Choice (Second Term)

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

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

In store management, what does the term “Stock Turnover” measure?

A) Sales revenue

B) Average inventory investment

C) Order quantity

D) Lead time

Answer: B) Average inventory investment

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

A) Holding costs

B) Setup costs

C) Stockout costs

D) Carrying costs

Answer: B) Setup costs

What is the primary objective of the Reorder Point (ROP) method in inventory control?

A) Minimizing order quantity

B) Reducing carrying costs

C) Determining when to reorder

D) Maximizing stockouts

Answer: C) Determining when to reorder

Which inventory method assumes that the oldest items are sold first?

A) LIFO (Last In, First Out)

B) FIFO (First In, First Out)

C) Weighted Average

D) Specific Identification

Answer: B) FIFO (First In, First Out)

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

A) Slow-moving items

B) Expired goods

C) Fast-selling items

D) Newly acquired items

Answer: B) Expired goods

Which inventory control technique is based on the Pareto Principle (80/20 rule)?

A) ABC analysis

B) Economic Order Quantity (EOQ)

C) Just-in-time (JIT)

D) Reorder Point method

Answer: A) ABC analysis

What is the significance of lead time in inventory management?

A) Determining order quantity

B) Calculating carrying costs

C) Managing stockouts

D) Planning for reorder point

Answer: D) Planning for reorder point

Which of the following is a disadvantage of a decentralized approach in store management?

A) Improved local market knowledge

B) Enhanced decision-making speed

C) Increased transportation costs

D) Reduced coordination challenges

Answer: C) Increased transportation costs

What role does the Economic Order Quantity (EOQ) play in minimizing costs in store management?

 

A) Maximizing ordering costs

B) Determining optimal order quantity

C) Increasing carrying costs

D) Enhancing stockouts

Answer: B) Determining optimal order quantity

In inventory management, what does the term “Carrying Costs” encompass?

 

A) Costs associated with placing orders

B) Costs of holding or storing inventory

C) Costs of stockouts

D) Costs of obsolete items

Answer: B) Costs of holding or storing inventory

Explain the concept of a “Safety Stock” in store management and its role.

 

Discuss the advantages and disadvantages of implementing a barcoding system in store management.

 

Explain how technology, such as RFID, contributes to the efficiency of supply chain management in stores.

 

Describe the factors to consider when determining the reorder point in inventory management.

 

Discuss the impact of poor inventory management on the overall performance of a store.

 

Section B: Theory Questions (Second Term)

Explain the concept of a “Safety Stock” in store management and its role.

 

Discuss the advantages and disadvantages of implementing a barcoding system in store management.

 

Explain how technology, such as RFID, contributes to the efficiency of supply chain management in stores.

 

Describe the factors to consider when determining the reorder point in inventory management.

 

Discuss the impact of poor inventory management on the overall performance of a store.