SS1 Second Term Store Management Past Questions And Answers (Objective and Theory)
SS1 Second Term Store Management Past Questions And Answers (Objective and Theory)
Senior Secondary School 1 (SS1) second term store management, including multiple-choice questions with options and answers, along with theory questions for Section B.
Section A: Multiple-Choice Questions
What does the term “Lead Time” refer to in store management?
A) Time taken to restock shelves
B) Time taken for the delivery of goods
C) Time spent by employees on breaks
D) Time taken for stocktaking
Answer: B) Time taken for the delivery of goods
Which inventory costing method assumes that the oldest items are sold first?
A) FIFO
B) LIFO
C) Weighted Average
D) Specific Identification
Answer: A) FIFO (First In, First Out)
What is the primary purpose of a perpetual inventory system?
A) Monthly stocktaking
B) Continuous tracking of stock levels
C) Yearly audit
D) Random stock checks
Answer: B) Continuous tracking of stock levels
What is the main advantage of using a centralized purchasing system in store management?
A) Faster decision-making
B) Lower transportation costs
C) Better supplier relationships
D) Increased autonomy for individual stores
Answer: A) Faster decision-making
Which factor is crucial in determining the reorder point of a product?
A) Economic order quantity (EOQ)
B) Carrying costs
C) Lead time demand
D) Safety stock level
Answer: C) Lead time demand
In the context of inventory turnover, what does a high turnover ratio indicate?
A) Slow-moving inventory
B) Efficient use of inventory
C) High carrying costs
D) Excessive safety stock
Answer: B) Efficient use of inventory
What is the purpose of the Economic Order Quantity (EOQ) model in inventory management?
A) Minimize holding costs
B) Maximize order processing time
C) Reduce lead time
D) Optimize order quantity
Answer: A) Minimize holding costs
Which inventory management technique involves classifying items into categories based on their importance?
A) ABC analysis
B) JIT system
C) EOQ model
D) Safety stock calculation
Answer: A) ABC analysis
What is the primary goal of cycle counting in store management?
A) Monthly stocktaking
B) Continuous tracking of stock levels
C) Yearly audit
D) Regular stock checks
Answer: D) Regular stock checks
Which of the following is an example of a non-revenue-generating inventory?
A) Finished goods
B) Raw materials
C) Work-in-progress
D) MRO (Maintenance, Repair, and Operating) inventory
Answer: D) MRO (Maintenance, Repair, and Operating) inventory
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 expedite order processing
Answer: B) To handle unexpected demand fluctuations
Which document serves as evidence of the quantity and condition of goods when they are received?
A) Invoice
B) Delivery note
C) Purchase order
D) Bill of lading
Answer: D) Bill of lading
In the context of store layout, what is the purpose of the checkout or cash register area?
A) Employee break area
B) Customer service desk
C) Point of sale and transaction processing
D) Stock storage area
Answer: C) Point of sale and transaction processing
What is the primary purpose of a perpetual inventory system?
A) Monthly stocktaking
B) Continuous tracking of stock levels
C) Yearly audit
D) Random stock checks
Answer: B) Continuous tracking of stock levels
Which factor should be considered when determining the reorder point of a product?
A) Carrying costs
B) Economic order quantity (EOQ)
C) Lead time demand
D) Safety stock level
Answer: C) Lead time demand
Explain the concept of “ABC analysis” in inventory management and how it helps in classifying items based on their importance.
Discuss the role of technology in improving order fulfillment processes in store management. Provide examples of technological tools used for efficient order processing.
Explain the term “Just-In-Time” inventory management and its potential challenges for store managers.
Discuss the impact of poor inventory management on a retail business, considering factors such as stockouts, overstocking, and customer satisfaction.
Explain the importance of effective supplier relationships in store management and how it contributes to the overall success of a retail business.