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 21, 2026

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Question 1

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 2

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 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

The managing director requires action to be taken to improve the organization’s profitability and has asked for suggestions to enable this to be achieved. The procurement manager has said that a just-in-time (JIT) system should be introduced. Would such a system improve profitability?

A : Yes, because it would reduce stock holding costs

B : No, because it would increase buffer stock

C : No, because it would increase stock holding costs

D : Yes, because it would reduce stock turn rates

Answer: A

Question 5

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

Page: 1 / 76

Total 380 Questions | Updated On: Apr 21, 2026

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