Free CIPS L4M7 Exam Questions

Why do you need a life cycle asset management plan? 

One of the classifications of inventory is referred to as 'indirect supplies.' Which of the following items are examples of indirect supplies in a water bottling plant? Lubricants for maintenance of production machines Computer cartridges for the procurement office Reams of printed labels to stick on water bottles Blue-colored plastic caps to seal the water bottles

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?

Which of the following are critical factors that must be considered when evaluating warehouse or storage locations? The cost of the proposed locationWho owns the storage location or warehouse Access to transport networks The number of windows in the building

An organisation needs to determine whether to lease a piece of equipment or purchase it outright. From the following statements, which ones describe the advantages for a procurement organisation to lease rather than to purchase outright? Capital allowances may be set against tax, and grants may be available There is no initial investment which would tie up the organisation’s working capital It would protect against technological obsolescence as equipment can be replaced as required The total cost may be higher than purchasing the equipment outright