Free CIPS L4M7 Exam Questions

Become CIPS Certified with updated L4M7 exam questions and correct answers

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Total 380 Questions | Updated On: Feb 20, 2026

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Question 1

Why do you need a life cycle asset management plan?

A : It is the basis of calculating the financial depreciation of the asset

B : It is used to calculate the manpower required to operate the asset

C : It is used to determine what the overall costs of disposing of the asset will be

D : It is a basis for planning resources and budgets to support the asset

Answer: D

Question 2

Which of the following are examples of acquisition costs for the buying organisation? Select TWO that apply.

A : The disposal costs of the assets

B : The costs associated with consumer product sales tax

C : The costs of approving and paying invoices

D : The advertising costs of the marketing company

E : The costs of the goods or materials

Answer: C,E

Question 3

Which of the following are examples of subjective methods of forecasting? Select TWO that apply. Trend line analysis Moving averages Market research Expert opinion Seasonal variations

A : 1 and 2 only

B : 3 and 4 only

C : 2 and 5 only

D : 1 and 5 only

Answer: B

Question 4

A buyer has been asked to support the chief procurement officer with a whole-life cost analysis. What is thekey benefit of a cross-functional team for the development of a whole-life costing model?

A : It will ensure quicker access to all the data needed to develop the whole-life cost model

B : It will ensure that the decision making process will be slowed down

C : It will ensure that information is not shared

D : It will ensure that no department is left out of the planning process

Answer: D

Question 5

A company bought 100 items for $15 each and then another 100 items for $20 each. It sold 60 items and assumed the COSG for each item was $15. It also assumed the value of the remaining 140 items was split into two groups: 40 items worth $15 each and 100 items worth $20 each. This is an example of…?

A : Last in, First out method

B : Just in Time method

C : Net Present Value

D : First in, First out method

Answer: D

Page: 1 / 76

Total 380 Questions | Updated On: Feb 20, 2026

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