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Industrial Engineering Objective Type Questions - Set 04 - ObjectiveBooks

The document contains 10 multiple choice questions related to industrial engineering concepts. Question topics include break-even point calculation, critical path analysis, definitions of break-even point and incentive plans, objectives of inventory control and value engineering, techniques like A-B-C analysis and advantages of PERT over Gantt charts.

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Mohammed Shareef Koppilakkal
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106 views3 pages

Industrial Engineering Objective Type Questions - Set 04 - ObjectiveBooks

The document contains 10 multiple choice questions related to industrial engineering concepts. Question topics include break-even point calculation, critical path analysis, definitions of break-even point and incentive plans, objectives of inventory control and value engineering, techniques like A-B-C analysis and advantages of PERT over Gantt charts.

Uploaded by

Mohammed Shareef Koppilakkal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Industrial Engineering Objective Type Questions - Set 04

Practice Test: Question Set - 04

1. If ‘F’ is the fixed cost, ‘V’ is the variable cost per unit (or total variable costs) and ‘P’ is the selling price of each unit (or total sales
value), then break-even point is equal to
(A) (F × V)/P

(B) (F × P)/V

(C) F/[1 + (V/P)]

(D) F/[1 - (V/P)]

2. The critical path of a network represents


(A) The minimum time required for completion of project

(B) The maximum time required for completion of project

(C) Maximum cost required for completion of project

(D) Minimum cost required for completion of project

3. The break-even point represents


(A) The most economical level of operation of any industry

(B) The time when unit can run without i loss and profit

(C) Time when industry will undergo loss


(D) The time when company can make maximum profits

4. One of the basic essentials of an incentive plan is that


(A) A differential piece rate system should exist

(B) Minimum wages should be guaranteed

(C) Provide incentive to group efficiency performance

(D) All standards should be based on time studies

5. Inventory control in production, planning and control aims at


(A) Achieving optimization

(B) Ensuring against market fluctuations

(C) Acceptable customer service at low capital investment in inventory

(D) Discounts allowed in bulk purchase

6. The allowed time for a job equals standard time plus


(A) Policy allowance

(B) Interference allowance

(C) Process allowance

(D) Learning allowance

7. Value engineering aims at finding out the


(A) Depreciation value of a product

(B) Resale value of a product


(C) Major function of the item and accomplishing the same at least cost without change in quality

(D) Break-even point when machine requires change

Answer: Option C
8. A-B-C analysis
(A) Is a basic technique of materials management

(B) Is meant for relative inventory control

(C) Does not depend upon the unit cost of the item but on its annual consumption

(D) All of the above

9. Break-even analysis can be used for


(A) Short run analysis

(B) Long run analysis

(C) Average of above two run analysis

(D) There is no such criterion

10. A big advantage of PERT over Gantt charts is that in the former case
(A) Activities and events are clearly shown

(B) Early start and late finish of an activity are clearly marked

(C) Activity times are clear

(D) Interrelationship among activities is clearly shown

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