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: Apr 29, 2026

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Question 1

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 2

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

Question 3

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 4

What does MRP software schedule?

A : Human resource management

B : Tax accounting

C : Executive meetings

D : Production processes

Answer: D

Question 5

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

Page: 1 / 76

Total 380 Questions | Updated On: Apr 29, 2026

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