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[General] Reliable L4M7 Test Preparation | L4M7 Reliable Test Voucher

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【General】 Reliable L4M7 Test Preparation | L4M7 Reliable Test Voucher

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In the CIPS Whole Life Asset Management (L4M7) Web-based Practice Test, you will get the L4M7 questions that are real and accurate. Furthermore, the L4M7 practice exam works smoothly on all operating systems including Mac, Linux, IOS, Android, and Windows. it is a browser-based CIPS Whole Life Asset Management (L4M7) practice test software, there is no need for any specific software installation or additional plugins to function correctly.
CIPS L4M7 exam is suitable for professionals who are involved in the management of assets and equipment at any stage of their lifecycle - from acquisition to disposal. It covers a range of topics including asset planning and design, procurement and supply chain management, maintenance and servicing, and disposal and replacement. L4M7 Exam consists of six modules, and successful completion of all modules leads to the award of the CIPS L4M7 certification.
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CIPS Whole Life Asset Management Sample Questions (Q196-Q201):NEW QUESTION # 196
"Open stock plus purchases minus closing stock" is the formula of which of the following?
  • A. Revenue
  • B. Liability
  • C. Cost of goods sold
  • D. Inventory
Answer: C
Explanation:
The amount of closing stock (properly valued) is used to arrive at the cost of goods sold in a periodic inventory system with the following calculation:
Opening stock + Purchases - Closing stock = Cost of goods sold

NEW QUESTION # 197
Which is the best definition of reorder point?
  • A. The point at which stock will fall to zero minus lead-time
  • B. The level inventory at which an order must be made
  • C. The point when one unit of stock remains in stock
  • D. The point when stock reaches zero
Answer: B
Explanation:
Reorder point is the point either in time or in a process when the next order should be placed.
Reference:
LO 2, AC 2.3

NEW QUESTION # 198
A procurement manager is considering leasing premises rather than purchasing them. If the company decides to lease premises, which of the following are correct?
1. The lessee has possession and use of the asset
2. The asset is subject to a hire purchase agreement
3. The lessor retains ownership of the asset
4. At the end of the lease. ownership automatically transfers to the lessee
  • A. 1 and 3 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 3 and 4 only
Answer: B

NEW QUESTION # 199
Which of the following statements is true?
  • A. Number of independent demand items may be derived from the forecast
  • B. All indirect supplies are independent demand items
  • C. Dependent demand items are not directly correlated with production rate
  • D. Car engine is an example of independent demand items in a car assembly plant
Answer: A
Explanation:
Dependent demand is the requirement for stock item which is directly related to and therefore de-pendent upon the rate of production (examples are: raw materials, components, energy).
Independent demand is the requirement for stock item which is not directly related to, and is therefore independent of rate of production.
'Number of independent demand items may be derived from the forecast': Although independent demand is called thus, it can still be influenced by economic factors external to the demand-supply model such as general consumer sentiment and consumers' available disposal income. However, businesses that need to predict the number of products with independent demand needed to sate their customers have it easier than businesses that must calculate the demand for products with dependent demand because there are fewer factors to consider.
'Dependent demand items are not directly correlated with production rate': As mentioned above, dependent demand items are directly correlated with production rate.
'All indirect supplies are independent demand items': Though most indirect supplier are inde-pendent demand, some are determined by the production rate, i.e. energy consumption of a major machinery.
'Car engine is an example of independent demand items in a car assembly plant': Car engine is a component in car which is the finished good of a car assembly plant, it is a dependent demand item.
LO 2, AC 2.1

NEW QUESTION # 200
One of the important outputs of an MRP system is the material requirement plan. This plan shows the net requirements for materials or components to make the final product. Which of the following best describes the net material requirements?
  • A. Gross requirements + on-order - Inventory on-hand
  • B. Total requirements - order releases + amount on-hand
  • C. Gross requirements - Inventory level - Scheduled receipt
  • D. On order + Inventory on-hand
Answer: C
Explanation:
The net requirements are worked out using the following equation:
Net requirements = Total requirements - Available inventory
Where:
Total requirements = Gross requirements
Available inventory = Inventory on-hand + Units on-order
In the other words: Net requirements = Gross requirements - Inventory on-hand - Units on-order Inventory on-hand is also known as Inventory level, whereas Units on-order can be called Scheduled receipt.
Reference: CIPS study guide page 117
LO 2, AC 2.3

NEW QUESTION # 201
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