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Free Whole Life Asset Management Practice Questions

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Exam style questions across every L4M7 domain

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Total Questions : 294

Start with our free L4M7 practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real CIPS Level 4 Diploma in Procurement and Supply exam. Each L4M7 exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your CIPS weak domains, see where you're losing marks, and build a focused study plan in minutes.

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Question # 11

Which of the following are holding costs of inventory in a warehouse?

    Costs related to the value of the inventory held

    Losses due to product deterioration

    Preliminary costs associated with purchase orders

    Loss of supplier discounts due to reduction in reorder quantities

Options:

A.  

2 and 4 only

B.  

2 and 3 only

C.  

1 and 3 only

D.  

1 and 2 only

Discussion 0
Question # 12

When designing the layout of a warehouse or stores area, one of the factors to consider is the width of the aisles between the racking. Which of the following is a main consideration when calculating the aisle width?

Options:

A.  

Turning circle of the forklift truck and the size of the pallet being carried

B.  

Dimensional depth and height of pallet racks

C.  

Overall height of the driver's cage of the forklift truck

D.  

Dimensional length and depth of the items on a pallet

Discussion 0
Question # 13

Which of the following are advantages for a purchasing organisation when adopting a leasing method of acquiring equipment?

    The initial purchase cost of the equipment is avoided

    The payments can be met from daily trading income

    The buyer can freely switch to newer technology whenever they wish

    The buyer is not responsible for any damage at the end of the contract

Options:

A.  

2 and 4 only

B.  

1 and 2 only

C.  

1 and 4 only

Discussion 0
Question # 14

Why would an organisation need to hold safety stock?

Options:

A.  

To allow for the loss of idle time and to spread the fixed overheads across a reduced level of output

B.  

To create zero inventories and allow the development of a Just-In-Time (JIT) approach to inventory management

C.  

To cover shortages due to agreed lead times being exceeded or the actual demand being greater than anticipated

D.  

To allow for a faster and more efficient inventory turnover which will aid the cash flow of the organisation

Discussion 0
Question # 15

Which of the following are typical characteristics of 2D barcodes? Select TWO that apply.

Options:

A.  

Every 2D barcodes must conform international standards

B.  

The 2D barcodes are machine-readable

C.  

2D barcodes are exclusively used for marketing purpose

D.  

2D barcodes can be read by linear scanners

E.  

2D barcodes can contain more data than 1D barcodes

Discussion 0
Question # 16

XYZ Ltd is looking for new office space overseas. To keep the overhead expense minimal, it chooses leasing rather than purchasing new office. In leasing contract, which of the following costs are most likely to be attributable to the lessee?

1. Disposal costs

2. Rentals

3. Operating costs

4. Vendor selection costs

Options:

A.  

2, 3 and 4

B.  

1, 2 and 3

C.  

1, 3 and 4

D.  

1, 2 and 4

Discussion 0
Question # 17

A hospital is purchasing a new software product that will advise nurses when to give medications to hospitalised patients. This is a mobile application that will be used on tablets carried by the nurses. The software is being developed and tested by a company that specialises in mobile medical applications. This software will interface with existing hospital software that orders the medications from the pharmacy. Which acceptance test activity will be required to check whether the new software integrates well with current IT system?

Options:

A.  

Health and safety testing

B.  

Dry running

C.  

Stress testing

D.  

Compatibility testing

Discussion 0
Question # 18

Which of the following can replace pallets as bases for unit loads but they require push pull acces-sories to retrieve or discharge unit load?

Options:

A.  

Shrink wraps

B.  

Post pallets

C.  

Skids

D.  

Slip sheets

Discussion 0
Question # 19

A manager who is concerned about the environmental impact of packaging should do which of the following?

Options:

A.  

Adopt international environmental packaging standards

B.  

Try to reduce the costs of packaging

C.  

Purchase the packaging materials in bulk

D.  

Not use the packaging materials at all

Discussion 0
Question # 20

Among different types of costs associated with inventory, the opportunity cost of the investment tied up in inventory belongs to which of the following?

Options:

A.  

Acquisition costs

B.  

Purchase price

C.  

Holding costs

D.  

Costs of stockouts

Discussion 0

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