L4M7 Test Assessment - L4M7 Valid Test Question

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The Chartered Institute of Procurement and Supply (CIPS) L4M7 exam is a critical certification program that focuses on Whole Life Asset Management. L4M7 exam is designed to equip procurement and supply chain professionals with the knowledge and skills needed to effectively manage assets throughout their lifecycle. L4M7 course is suitable for individuals who want to enhance their career in the procurement and supply chain industry or those who wish to develop their knowledge in asset management.

CIPS L4M7 certification exam is an essential qualification for professionals who are looking to enhance their knowledge and skills in the field of asset management. CIPS Whole Life Asset Management certification is designed to provide professionals with a comprehensive understanding of the principles and practices involved in managing assets throughout their entire life cycle. The CIPS L4M7 Certification Exam not only demonstrates a professional's knowledge of asset management but also their commitment to ongoing professional development in this field.

CIPS L4M7 exam is a rigorous assessment that tests candidates on their knowledge and understanding of asset management principles and practices. L4M7 exam consists of multiple-choice questions and is designed to be completed within a set time period. Candidates are required to achieve a passing score in order to receive the certification.

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Free PDF 2025 Unparalleled CIPS L4M7: CIPS Whole Life Asset Management Test Assessment

This is similar to the L4M7 desktop format but this is browser-based. It requires an active internet connection to run and is compatible with all browsers such as Google Chrome, Mozilla Firefox, Opera, MS Edge, Safari, Internet Explorer, and others. The CIPS L4M7 Mock Exam helps you self-evaluate your CIPS L4M7 exam preparation and mistakes. This way you improve consistently and attempt the L4M7 certification exam in an optimal way for excellent results in the exam.

CIPS Whole Life Asset Management Sample Questions (Q113-Q118):

NEW QUESTION # 113
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?

A. No, as it commits the organization to purchasing the equipment and the supplier to deliver it
B. Yes, as the payments can be linked directly to a specific performance milestone of the contract
C. Yes, as it means the contract warranties are easier to change
D. No, as it is an unfair contract term and places the supplier at a disadvantage in the contract

Answer: B

Explanation:
Staged payments linked to milestones (order, delivery, and acceptance testing) provide a fair and structured approach for both buyer and supplier. They ensure:
* Alignment with performance: Payment is contingent on the supplier meeting specific contract stages, protecting the buyer.
* Risk mitigation: The buyer avoids full payment upfront, reducing financial exposure.
In whole-life asset management, this approach enables better cost control and accountability throughout the equipment's lifecycle.

NEW QUESTION # 114
Which among the following are the tools for reducing acquisition costs in purchasing?
1. Procurement card
2. Automated Storage & Retrieval System
3. Porter's value chain
4. P2P system

A. 1 and 3 only
B. 1 and 4 only
C. 2 and 3 only
D. 2 and 4 only

Answer: B

Explanation:
There are several methods to reduce the acquisition costs in procurement. L4M7 study guide lists the following methods:
- Buyer discretionary spend
- 'User buying'
- Vendor managed inventory (VMI)
- Two-bin Kanban
- Product catalogue
- e-Procurement techniques, including some systems such as ERP, procure-to-pay (P2P), e-requisition, e- tendering, etc.
- Procurement cards

NEW QUESTION # 115
XYZ Inc opens a tender to purchase new forklift trucks for their new established warehouse. In the final round, there are two suppliers remain who offer two different bids. Supplier A's bid has high initial investment. After calculating the net present value, the NPV in year five is positive. On the other hand, supplier B's bid has low purchase price, with the NPV in year five is negative. If the NPV is the sole selection criterion, XYZ Inc should select the bid which has...?

A. The lowest NPV
B. Negative NPV
C. Zero NPV
D. Positive NPV

Answer: D

Explanation:
Net present value (NPV) is the 'today' net value that deprives from 'future' cash flow of an invest-ment or a capital purchase. Net Present Value is a helpful tool for assessing the total lifetime value of an investment. Procurement professionals or investors can base on this value to make decision to achieve value for money. Generally, an organisation should select the offer which has the highest NPV among their options. Preferably, the NPV of an capital investment should be positive, which means the investment eventually adds value to the business.
Reference:
LO 3, AC 3.2

NEW QUESTION # 116
Among different types of costs associated with inventory, the costs of obtaining purchase approvals are...?

A. Purchasing price
B. Holding costs
C. Acquisition costs
D. Costs of stockouts

Answer: C

Explanation:
Direct and indirect costs of holding inventory include the following:
- Acquisition costs: preparing the requisition, supplier selection and approvals, time and costs of the procurement process, etc.
- Holding costs
- Costs of stockouts
LO 2, AC 2.2

NEW QUESTION # 117
The purchase-order lead time is the...?

A. Period between placing an order and its delivery
B. Period between receiving a customer order and producing the products
C. Period between receiving a customer order and delivering the items
D. Time needed to correct errors in the defective products

Answer: A

Explanation:
Purchase order lead time (POLT) refers to the number of days from when a company places an order for production inputs it needs, to when those items arrive at the manufacturing plant.
LO 2, AC 2.3

NEW QUESTION # 118
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