Most Recent CIPS L4M7 Exam Questions & Answers

Prepare for the CIPS Whole Life Asset Management exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the CIPS L4M7 exam and achieve success.

The questions for L4M7 were last updated on Dec 20, 2024.

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Question No. 1

Removal or disposal of assets should depend on an assessment of which of the following? Select TWO that apply.

AConsumer demand for the product

BThe current rate of interest for new equipment

CLocation of the equipment and accessibility

DThe total cost of the equipment

EType of equipment and incorporated components

Show Answer

Correct Answer: C, E

Question No. 2

With D is the annual demand (units), S is cost per order, H is annual carrying cost per unit; the formula for Economic Order Quantity is....?

A(D*S/2H)

B(2D*S/H)

C(D*S*H)

D(D*S/3H)

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Correct Answer: B

LO 2, AC 2.3

Question No. 3

Toll Group has thousands of end-of-life IT assets that need to be disposed of. The senior manage-ment of Toll Group is largely concerned about sustainability in waste management, especially electronic waste. Before selecting a supplier to manage the process, the procurement team is required to assess the environmental risks regarding disposal of the assets. Risk assessment is basically based on the measurement of which factors?

1. Impact

2. Reward

3. Surveillance

4. Likelihood

A1 and 4 only

B2 and 4 only

C2 and 3 only

D1 and 3 only

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Correct Answer: A

All risk management processes follow the same basic steps, although sometimes different jargon is used to describe these steps. Together these 5 risk management process steps combine to deliver a simple and effective risk management process.

Step 1: Identify the Risk. You and your team uncover, recognize and describe risks that might affect your project or its outcomes. There are a number of techniques you can use to find project risks. During this step you start to prepare your Project Risk Register.

Step 2: Analyze the risk. Once risks are identified you determine the likelihood and consequence of each risk. You develop an understanding of the nature of the risk and its potential to affect pro-ject goals and objectives. This information is also input to your Project Risk Register.

Step 3: Evaluate or Rank the Risk. You evaluate or rank the risk by determining the risk magni-tude, which is the combination of likelihood and consequence. You make decisions about whether the risk is acceptable or whether it is serious enough to warrant treatment. These risk rankings are also added to your Project Risk Register.

Step 4: Treat the Risk. This is also referred to as Risk Response Planning. During this step you assess your highest ranked risks and set out a plan to treat or modify these risks to achieve acceptable risk levels. How can you minimize the probability of the negative risks as well as enhancing the opportunities? You create risk mitigation strategies, preventive plans and contingency plans in this step. And you add the risk treatment measures for the highest ranking or most serious risks to your Project Risk Register.

Step 5: Monitor and Review the risk. This is the step where you take your Project Risk Register and use it to monitor, track and review risks.

- What are the 5 Risk Management Steps in a Sound Risk Management Process?

- CIPS study guide page 192-193

LO 3, AC 3.3

Question No. 4

A procurement manager has agreed a contract for the acquisition of a piece of capital equipment and has negotiated a staged payment contract of 30% with order, 30% on delivery, and the remaining 40% on acceptance testing. Was this the right thing to do?

ANo, as it commits the organisation to purchasing the equipment and the supplier to deliver it

BYes, as the payments can be linked directly to a specific performance milestone of the contract

CYes, as it means the contract warranties are easier to change

DNo, as it is an unfair contract term and places the supplier at a disadvantage in the contract

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Correct Answer: B

Question No. 5

Which of the following are essential aspects that are required for the successful implementation of Just-In-Time (JIT)? Select TWO that apply.

AThe purchasing of parts in bulk at lower prices covers the costs of delivery and storage required for JIT

BParts must arrive where they are needed, when they are needed, and in the exact quantity needed

CAll parts arriving must be of a quality standard which is usable and free from defects

DThe cost of carrying increased parts inventory to meet customer demand is transferred to the customer

ESuppliers must hold a buffer stock of components to ensure that they are able to meet JIT demand

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Correct Answer: B, C

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