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

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

Question 2

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

A : 1 and 3 only

B : 2 and 3 only

C : 2 and 4 only

D : 1 and 4 only

Answer: A

Question 3

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

Question 4

What is the smallest aisle width that standard counterbalanced forklifts can operate in?

A : 4.9 ft - 5.2 ft

B : 10.5 ft - 13.1 ft

C : 5.6 ft - 5.9 ft

D : 6.9 ft - 7.2 ft

Answer: B

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

Page: 1 / 76

Total 380 Questions | Updated On: Apr 03, 2026

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