Free CIPS L4M7 Exam Questions

Become CIPS Certified with updated L4M7 exam questions and correct answers

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Total 380 Questions | Updated On: Mar 20, 2026

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Question 1

Why do you need a life cycle asset management plan?

A : It is the basis of calculating the financial depreciation of the asset

B : It is used to calculate the manpower required to operate the asset

C : It is used to determine what the overall costs of disposing of the asset will be

D : It is a basis for planning resources and budgets to support the asset

Answer: D

Question 2

GAP Ltd is a retail business that wants to reduce its spending on stock. Its current procurement process is manual, repetitive and slow. The management team plans to use procure-to-pay (P2P) software to streamline the process and cut costs. What kind of cost is GAP aiming to lower?

A : Cost of stockouts

B : Acquisition costs

C : Holding costs

D : Disposal costs

Answer: B

Question 3

Do all types of warehouses require access to daylight to reduce the cost of electricity?

A : , because only ventilation can help to reduce the humidity in the warehouse

B : , because sunlight sterilises inventories in damp conditions

C : , because some types of stock are sensitive to sunlight

D : , because organisation's need for artificial lighting and heating will reduce

Answer: C

Question 4

A warehouse manager is evaluating the use of Automated Guided Vehicles (AGVs) within a repetitive taskenvironment. After reviewing their use and price, the manager decided to invest in several AGVs. Were theycorrect 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 : Yes, organisations must use high-tech solutions where possible

D : No, as they are only suitable for use in non-repetitive task environments

Answer: A

Question 5

One of the classifications of inventory is referred to as 'indirect supplies.' Which of the following items are examples of indirect supplies in a water bottling plant? Lubricants for maintenance of production machines Computer cartridges for the procurement office Reams of printed labels to stick on water bottles Blue-colored plastic caps to seal the water bottles

A : 1 and 2 only

B : 1 and 3 only

C : 2 and 3 only

D : 3 and 4 only

Answer: A

Page: 1 / 76

Total 380 Questions | Updated On: Mar 20, 2026

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