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: Jan 13, 2026

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Question 1

A company bought 100 items for $15 each and then another 100 items for $20 each. It sold 60 items and assumed the COSG for each item was $15. It also assumed the value of the remaining 140 items was split into two groups: 40 items worth $15 each and 100 items worth $20 each. This is an example of…?

A : Last in, First out method

B : Just in Time method

C : Net Present Value

D : First in, First out method

Answer: D

Question 2

Which of the following best describe the function of MRP?

A : anning and controlling of production and inventory

B : anning and monitoring of inventory resources

C : anning and controlling of production and finance

D : anning and monitoring of production resources only

Answer: A

Question 3

Amanda is the purchasing manager for AB Construction based in France. She is considering purchasing an asset from overseas but knows she must account for fluctuations in exchange rates in the contract. Is Amanda correct?

A : No, as it will be better to purchase the asset in AB Construction's local currency as it would be efficient and more stable

B : Yes, as AB Construction could pay more for the asset than intended and Amanda should include a currency fluctuation clause

C : No, as the price can be re-negotiated post-contract sign-off by AB Construction and the supplier

D : Yes, as Amanda will be able to decide the currency exchange rates to be used

Answer: B

Question 4

Which of the following are most likely to be the purposes of packing and packaging?

1. To bring the product cost down

2. To protect the product

3. To improve the product recognition

4. To test the product durability

A : 3 and 4 only

B : 1 and 2 only

C : 1 and 4 only

D : 2 and 3 only

Answer: D

Question 5

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

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Total 343 Questions | Updated On: Jan 13, 2026

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