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[Hardware] L4M7 Latest Braindumps Book | Accurate L4M7 Study Material

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【Hardware】 L4M7 Latest Braindumps Book | Accurate L4M7 Study Material

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In the PDF version, the CIPS Whole Life Asset Management (L4M7) exam questions are printable and portable. You can take these CIPS L4M7 pdf dumps anywhere and even take a printout of CIPS Whole Life Asset Management (L4M7) exam questions. The PDF version is mainly composed of real CIPS L4M7 Exam Dumps. DumpExam updates regularly to improve its CIPS Whole Life Asset Management (L4M7) pdf questions and also makes changes when required.
The Chartered Institute of Procurement and Supply (CIPS) L4M7 exam is a critical certification program that focuses on Whole Life Asset Management. L4M7 exam is designed to equip procurement and supply chain professionals with the knowledge and skills needed to effectively manage assets throughout their lifecycle. L4M7 course is suitable for individuals who want to enhance their career in the procurement and supply chain industry or those who wish to develop their knowledge in asset management.
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CIPS L4M7 (CIPS Whole Life Asset Management) Certification Exam is an advanced-level certification that is specifically designed for professionals who want to gain expertise in the field of asset management. CIPS Whole Life Asset Management certification exam is a globally recognized qualification, which provides professionals with the necessary knowledge and skills to manage assets throughout their entire life cycle. L4M7 Exam covers a range of topics including asset identification, valuation, maintenance, replacement, and disposal. It also includes an understanding of the legal and regulatory requirements that govern asset management.
CIPS Whole Life Asset Management Sample Questions (Q72-Q77):NEW QUESTION # 72
Which of the following best describe the function of MRP?
  • A. Planning and controlling of production and finance
  • B. Planning and controlling of production and inventory
  • C. Planning and monitoring of inventory resources
  • D. Planning and monitoring of production resources only
Answer: B
Explanation:
Material requirement planning (MRP) is a production planning and material (inventory) control system used in manufacturing. Objectives of MRP are to ensure materials are available for production while minimising inventory and to plan production and procurement activities.
MRP process is described in the graph below:

Reference:
LO 2, AC 2.3

NEW QUESTION # 73
Which of the following best describes the relationship between a service level and safety stock?
  • A. When safety stock is zero the service level always equals zero.
  • B. A service level increases in proportion to an increase in safety stock
  • C. A safety stock is not always required to achieve a required service level
  • D. A service level decreases in proportion to a decrease in safety stock
Answer: C
Explanation:
Holding extra stocks will always improve customer service levels, or at least reduce the risk of them falling. This implies that if an organisation aims at higher service levels, they should have larger safety stock. However, increasing safety stock is not the only solution to improve service level. The widespread adoption of just-in-time (JIT) techniques particularly in the automotive industry has greatly reduced costs with increased service levels as well as the additional benefit of increased problem visibility.
The correct answer should be 'A safety stock is not always required to achieve a required service level'.
Reference:
LO 2, AC 2.2

NEW QUESTION # 74
What is the stock turn for a store holding products to the value of £250,000 with annual sales of these products amounting to £1,000,000?
  • A. 0
  • B. 1
  • C. 0.25
  • D. 0.4
Answer: A
Explanation:
Calculating Inventory Turnover (Stock Turn)
As with a typical turnover ratio, inventory turnover details how much inventory is sold over a period. To calculate the inventory turnover ratio, cost of goods (COGS) is divided by the average inventory for the same period.1 Cost of Goods Sold ÷ Average Inventory or Sales ÷ Inventory In this exercise, the stock turn equal to sales divided by inventory, or 1,000,000:250,000 = 4.

NEW QUESTION # 75
A company has obsolete inventories and it must write off these inventories. How does writing off inventories impact on the company's financial statements?
1. Stock increases
2. Stock decreases
3. Profit increases
4. Profit decreases
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 2 and 3 only
  • D. 1 and 4 only
Answer: B
Explanation:
An inventory write-off is a process of removing from the general ledger any inventory that has no value.
Using the direct write-off method, a business will record a credit to the inventory asset account and a debit to the expense account. For example, say a company with $100,000 worth of inventory decides to write off
$10,000 in inventory at the end of the year. First, the firm will credit the inventory account with the value of the write-off to reduce the balance. The value of the gross inventory will be reduced as such: $100,000 -
$10,000 = $90,000. Next, the inventory write-off expense account will be increased with a debit to reflect the loss.
The expense account is reflected in the income statement, reducing the firm's net income and thus its retained earnings. A decrease in retained earnings translates into a corresponding decrease in the shareholders' equity section of the balance sheet.
If the inventory write-off is immaterial, a business will often charge the inventory write-off to the cost of goods sold (COGS) account. The problem with charging the amount to the COGS account is that it distorts the gross margin of the business, as there is no corresponding revenue entered for the sale of the product.
Most inventory write-offs are small, annual expenses. A large inventory write-off (such as one caused by a warehouse fire) may be categorized as a non-recurring loss.
Reference:
- CIPS study guide page 86-90
- Inventory Write-Off
LO 2, AC 2.1

NEW QUESTION # 76
What are the contents of master production schedule in MRP system?
  • A. What components and materials are and when to purchase them
  • B. The total number of labour required to produce the final product
  • C. How many final products will be made and when to make them
  • D. The investment required for production
Answer: C
Explanation:
A master production schedule (MPS) is a plan for individual commodities to be produced in each time period such as production, staffing, inventory, etc.[1] It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded.[2] This plan quantifies significant processes, parts, and other resources in order to optimize production, to identify bottlenecks, and to anticipate needs and completed goods. Since a MPS drives much factory activity, its accuracy and viability dramatically affect profitability. Typical MPSs are created by software with user tweaking.

NEW QUESTION # 77
......
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