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L4M7 Exam Dumps : Whole Life Asset Management

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Whole Life Asset Management Questions and Answers

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Question 1

An organisation might find it more beneficial to lease and use an asset over a predetermined period. After this period, the lessee has the right to secure an outright ownership of the asset by paying an agreed amount; otherwise, the asset would be repossessed by the lessor. Which of the following is an advantage of leasing?

Options:

A.

Long-term commitment to pay instalments even if not using the asset

B.

Costs are known and agreed in advance

C.

The usage of the asset is usually capped

D.

The total cost of ownership is not applicable as the asset is leased

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Question 2

The minimal total cost is always achieved when there is only one warehouse. Is this statement true?

Options:

A.

No, fewer warehouse may lead to increasing transport costs

B.

Yes, because the operation cost for warehouse reaches minimal level

C.

Yes, because warehouse overheads are fully utilised

D.

No, more warehouses will reduce the cost of storage

Question 3

Which of the following are essential aspects that are required for the successful implementation of Just-In-Time (JIT)? SelectTWOthat apply.

Options:

A.

The purchasing of parts in bulk at lower prices covers the costs of delivery and storage required for JIT

B.

Parts must arrive where they are needed, when they are needed, and in the exact quantity needed

C.

All parts arriving must be of a quality standard which is usable and free from defects

D.

The cost of carrying increased parts inventory to meet customer demand is transferred to the customer

E.

Suppliers must hold a buffer stock of components to ensure that they are able to meet JIT demand

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