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 03, 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

A manufacturing company warehouse manager has recently decided to adopt across-docking system for some of the components held in storage. Which of thefollowing is associated with goods in cross-docking?

A : Cross-docking eliminates any inventory losses

B : Cross-docking leads to increased finished goods delivery costs

C : Cross-docking significantly increases delivery lead times

D : Cross-docking reduces or eliminates storage requirements

Answer: B

Question 3

In the periodic review system, the order quantity is the same for each order. Is this statement true?

A : , the order quantity should be equal to economic order quantity

B : , the inventory position at each review point differs from each other

C : , in periodic review system items are reviewed when the Kanban is triggered

D : , the next order quantity must be larger than the previous one

Answer: B

Question 4

Do all types of warehouses require access to daylight to reduce the cost of electricity?

A : , because only ventilation can help to reduce the humidity in the warehouse

B : , because sunlight sterilises inventories in damp conditions

C : , because some types of stock are sensitive to sunlight

D : , because organisation's need for artificial lighting and heating will reduce

Answer: C

Question 5

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?

A : Long-term commitment to pay installments even if not using the asset

B : Costs are known and agreed in advance

C : The usage of the asset is usually capped

D : The total cost of ownership is not applicable as the asset is leased

Answer: B

Page: 1 / 76

Total 380 Questions | Updated On: Apr 03, 2026

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