Class 9 Departments of a Commercial Organisation Mock Test (ICSE)

Topics in Departments of a Commercial Organisation

• Purchase department
• Production department
• Sales and marketing department
• Finance and accounts department
• Human resource department

Departments of a Commercial Organisation practice questions with answers

1. Q1Multiple choice·1 mark
   Which activity is primarily handled by the sales and marketing department of a commercial organisation?

   1. (a)Procuring raw materials at the lowest cost
   2. (b)Managing factory machinery and equipment
   3. (c)Determining pricing policies and promoting products
   4. (d)Calculating employee payroll and wages
   Show answer and step marks

   1. Correct option: (c) Determining pricing policies and promoting products+1

   Answer: (c)
2. Q2Multiple choice·1 mark
   The preparation of final accounts, budgeting, and management of cash flow in an enterprise are the core responsibilities of the:

   1. (a)Purchase department
   2. (b)Finance and accounts department
   3. (c)Human resource department
   4. (d)Production department
   Show answer and step marks

   1. Correct option: (b) Finance and accounts department+1

   Answer: (b)
3. Q3Short answer·2 marks
   State any two important functions of the purchase department in a commercial organisation.
   Show answer and step marks

   1. First function, any one of: buying raw materials, components and supplies of the right quality, in the right quantity, at the right time and at a reasonable price; inviting quotations and selecting reliable suppliers; placing purchase orders; following up orders to ensure timely delivery; inspecting goods received against the order; maintaining records of purchases and passing suppliers' bills for payment; or any other valid function of the purchase department.+1
   2. Second function, a different one from the same list.+1

   Answer: Any two of: buying materials of the right quality and quantity at the right time and price; selecting reliable suppliers; placing purchase orders; following up deliveries; inspecting goods received; keeping purchase records and passing bills for payment.
4. Q4Short answer·2 marks
   State two important functions of the purchase department in a commercial organisation.
   Show answer and step marks

   1. First function, any one of: buying raw materials, components and supplies of the right quality, in the right quantity, at the right time and at a reasonable price; inviting quotations and selecting reliable suppliers; placing purchase orders; following up orders to ensure timely delivery; inspecting goods received against the order; maintaining records of purchases and passing suppliers' bills for payment; or any other valid function of the purchase department.+1
   2. Second function, a different one from the same list.+1

   Answer: Any two of: buying quality materials in the right quantity at the right time and a reasonable price; selecting reliable suppliers; placing purchase orders; following up deliveries; inspecting goods received; keeping purchase records.
5. Q5Long answer·4 marks
   (a) State any two primary functions performed by the production department in a commercial organisation. [2] (b) Explain two reasons why maintaining quality control is crucial for the success of the production department. [2]
   Show answer and step marks

   1. (a) First function, any one of: production planning (deciding what, how much, when and how to produce); production control (routing, scheduling and following up work so that production goes as planned); converting raw materials into finished goods; quality control through inspection of materials and products; maintenance of plant and machinery; product design and research and development; or any other valid function of the production department.+1
   2. (a) Second function, a different one from the same list.+1
   3. (b) First reason, explained, any one of: it satisfies customers and builds goodwill and brand loyalty by supplying safe, defect-free products; it reduces wastage of materials and the cost of rework and returned goods; it ensures products meet required standards (such as BIS/ISI) and legal requirements; it helps the firm face competition and increase sales; or any other valid reason.+1
   4. (b) Second reason, a different one from the same list, explained.+1

   Answer: (a) Any two of: production planning; production control; converting raw materials into finished goods; quality inspection; maintenance of machinery; product design and research. (b) Any two of: satisfies customers and builds goodwill; reduces wastage, rework and returns; ensures products meet standards and legal requirements; helps face competition and raise sales.
6. Q6Long answer·4 marks
   The production department plays a vital role in transforming raw materials into finished goods within a manufacturing organisation. Answer the following questions regarding this department: (a) State any two primary objectives of the production department. [2] (b) Describe any two key functions performed by the production department. [2]
   Show answer and step marks

   1. (a) First objective, any one of: producing goods of the right quality; producing at the minimum possible cost; optimum utilisation of men, machines and materials; producing the right quantity on time to meet demand; reducing wastage; or any other valid objective of the production department.+1
   2. (a) Second objective, a different one from the same list.+1
   3. (b) First function, described, any one of: production planning (deciding what, how much, when and how to produce); production control (routing, scheduling and following up work so that production goes as planned); converting raw materials into finished goods; quality control through inspection of materials and products; maintenance of plant and machinery; product design and research and development; or any other valid function of the production department.+1
   4. (b) Second function, a different one from the same list, described.+1

   Answer: (a) Any two of: right quality; minimum cost; optimum use of resources; right quantity on time; less wastage. (b) Any two of: production planning; production control; converting raw materials into finished goods; quality control by inspection; maintenance of machinery; product design and research.

More Class 9 Commercial Studies mock tests