Free CIPS L4M7 Exam Dumps Questions & Answers

Removal or disposal of assets should depend on an assessment of which of the following? Select TWO that apply.

• A.  The current rate of interest for new equipment
• B.  Consumer demand for the product
• C.  Type of equipment and incorporated components
• D.  The total cost of the equipment
• E.  Location of the equipment and accessibility

A warehouse manager is evaluating the use of Automated Guided Vehicles (AGVs) within a repetitive task environment. After reviewing their use and price, the manager decided to invest in several AGVs. Were they correct in doing this?

• A.  Yes, as it will reduce the costs of employing labour
• B.  No, as it reduces the flexibility of the warehouse operations
• C.  No, as they are only suitable for use in non-repetitive task environments
• D.  Yes, organisations must use high-tech solutions where possible

XYZ Ltd is a large retailer who offers a range of products with different margins. The warehouse manager suggests that different product groups should have different level of safety stock. The appropriate level of safety stock is typically determined by...?

• A.  Choosing the level of safety stock that assures a given service level
• B.  Carrying sufficient safety stock so as to eliminate all stockouts
• C.  Taking the square root of the economic order quantity
• D.  Expected stockout cost multiplies with product margin

A recent audit by a firm of management consultants has revealed that the company must make a significant reduction in its administration and overhead costs as they are threatening the company's future viability. The procurement manager has highlighted the costs incurred in placing an order irrespective of the order size and has referred in particular to preliminary costs and placement costs. Which of the following is also an acquisition cost?

• A.  Proportional costs
• B.  Post-placement costs
• C.  Cost of stock outs
• D.  Holding costs

A construction organisation requires specialist equipment for digging deep foundations. Which of the following circumstances would result in the hire of equipment rather than leasing it?

• A.  The finance available and the potential profits available on the eventual sale of the leased equipment compared to hire costs
• B.  The results of a discounted cost analysis using comparative weekly payments for both hire and lease options
• C.  The subjective assessment of multiple factors for both hire and lease by the directors
• D.  The expected frequency of use, the storage available, and the lease cost of the equipment compared to hiring it