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CIPS Updated L4M7 Exam Questions and Answers by franco

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CIPS L4M7 Exam Overview :

Exam Name: Whole Life Asset Management
Exam Code: L4M7 Dumps
Vendor: CIPS Certification: CIPS Level 4 Diploma in Procurement and Supply
Questions: 255 Q&A's Shared By: franco
Question 56

A procurement manager has agreed a contract for the acquisition of a piece of capital equipment and has negotiated a staged payment contract of 30% with order, 30% on delivery, and the remaining 40% on acceptance testing. Was this the right thing to do?

Options:

A.

No, as it commits the organisation to purchasing the equipment and the supplier to deliver it

B.

Yes, as the payments can be linked directly to a specific performance milestone of the contract

C.

Yes, as it means the contract warranties are easier to change

D.

No, as it is an unfair contract term and places the supplier at a disadvantage in the contract

Discussion
Question 57

An organisation needs to determine whether to lease a piece of equipment or purchase it outright. From the following statements, which ones describe the advantages for a procurement organisation to lease rather than to purchase outright?

    Capital allowances may be set against tax, and grants may be available

    There is no initial investment which would tie up the organisation's working capital

    It would protect against technological obsolescence as equipment can be replaced as required

    The total cost may be higher than purchasing the equipment outright

Options:

A.

3 and 4 only

B.

1 and 2 only

C.

2 and 5 only

D.

2 and 4 only

Discussion
Question 58

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
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