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

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


Answer: A
Question 2

The minimal total cost is always achieved when there is only one warehouse. Is this statement true?


Answer: D
Question 3

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


Answer: C,E
Question 4

An organization might find it more beneficial to lease and use an asset over a predetermined period. After this period, the lessee has the right to secure outright ownership of the asset by paying an agreed amount; otherwise, the asset would be repossessed by the lessor. Which of the following is an advantage of leasing?


Answer: B
Question 5

Resevoir Inc runs several oil refineries across the country. These refineries require heavy investment, particularly in maintenance, repair and operating (MRO) inventory. But the inventory turnover rate of these MRO items are low, while some items have expired date, which increases the risks of obsolescence. Which of the following methods can address the issues of these MRO items?


Answer: D
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Total 380 Questions | Updated On: Feb 20, 2026
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