1571. Which of the following is not a benefit of carrying inventories _______.

A. Reduction in ordering cost
B. Avoiding lost sales
C. Reducing carrying cost *
D. Avoiding production shortages

1572. Which of the following is not a standard method of inventory valuation ?

A. First In First out
B. Standard cost
C. Average pricing *
D. Realizable value

1573. System of procuring goods when required, is known as ________.

A. Free on board (FOB)
B. Always butter control(ABC)
C. Jest in Time (JIT) *
D. Economic order quantity

1574. A firm has inventory turnover of 6 and cost of goods sold is 7,50,000 with better inventory management, the inventory turnover is increased to 10. This would result in _________.

A. Increase in inventory by 50,000
B. Decrease in inventory by 50,000 *
C. Decrease in cost of goods sold
D. Increase in cost of goods sold

1575. What is economic order quantity ?

A. Cost of an order
B. Cost of stock
C. Reorder level
D. Optimum Order size *

1576. The type of collateral (Security) used for short -term loan is _________.

A. Real estate
B. Plant & Machinery
C. Stock of good *
D. Equity share capital

1577. Which of the following is a liability of a bank ?

A. Treasury Bills
B. Commercial papers
C. Certificate of deposits *
D. Junk Bonds

1578. Commercial paper is a type of _________.

A. Fixed coupon bond
B. Unsecured short-term debt *
C. Equity share capital
D. Government bond

1579. Which of the following is not a spontaneous source of short-term funds?

A. Trade Credit
B. Accrued expenses
C. Provision for dividend *
D. All of the above

1580. The use of personal borrowing to alter the degree of financial leverage is called ______.

A. Homemade leverage *
B. Financial leverage
C. Operating leverage
D. None of the given option