Free CIPS L4M7 Exam Questions

Become CIPS Certified with updated L4M7 exam questions and correct answers

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Total 343 Questions | Updated On: Dec 18, 2025

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Question 1

The following are examples of scheduled maintenance except...

A : eaning of tank

B : pair signage damage from a recent storm

C : erhauling of machine

D : l changes and regular servicing

Answer: B

Question 2

What advantage can the use of ABC classification of stock provide in warehouse design?

A : It allows the organisation to categorise items in alphabetical order for easier storage and retrieval

B : It gives purchasing staff more time to concentrate on those items that have most financial benefit to the organisation

C : It assists in deciding on the most appropriate layout, handling systems, and what type of picking system to introduce

D : It determines where each item is to be located within the warehouse to aid inspection procedures

Answer: C

Question 3

David is required to include stock turnover ratio in the report. Which of the following should be collected to calculate the rate? Select THREE that apply

A : counted rate

B : livery schedule

C : t purchase

D : osing stock

E : ad time

F : ening stock

Answer: A,C,D

Question 4

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 5

Assuming that all other factors are constant except one, the net present value of a capital expenditure increases when...?

A : t cash flow during a time period increases

B : h outflow during a time period increases

C : discounted rate increases

D : initial cost of a project increases

Answer: A

Page: 1 / 69

Total 343 Questions | Updated On: Dec 18, 2025

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