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CIPS L4M2 Exam - Topic 3 Question 25 Discussion

Azram, a procurement analyst, has been tasked with applying whole life asset management when purchasing a piece of laboratory equipment. Was this the correct course of action?
C) No, because this considers the costs of quality
A) Yes, because this focuses only on the price of the equipment
B) Yes, because this considers all associated costs
D) No, because this covers various transactional costs

CIPS L4M2 Exam - Topic 3 Question 25 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 25
Topic #: 3
[All L4M2 Questions]

Azram, a procurement analyst, has been tasked with applying whole life asset management when purchasing a piece of laboratory equipment. Was this the correct course of action?

Show Suggested Answer Hide Answer
Suggested Answer: C

The buying organisation is keen to encourage innovation so they should use the outcome or output based specification. In an outcome-based specification, umbrella statements like 'good quality', 'ambient temperature', 'convenient way' are often used. This may confuse the suppliers, and it's hard to check the solution that supplier offers. On the other hand, ouput-based specifications often include measurable requirements. For example, a specification for air conditioning system states that the system should maintain the room temperature at 19-24 degrees Celsius. Therefore, output specification is more appropriate in this case.


LO 3, AC 3.1

by Jesusita at Dec 14, 2023, 08:56 PM

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Ahmed
9 months ago
I thought whole life meant considering everything, not just price!
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Ena
10 months ago
Definitely not A, that's too narrow of a focus.
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Angelyn
10 months ago
Wait, does that mean quality costs are ignored? Sounds off.
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Gail
10 months ago
I agree, option B makes the most sense here.
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Marge
10 months ago
Whole life asset management looks at all costs, not just price!
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Lenna
10 months ago
I feel like option D might be right since it mentions transactional costs, but I need to double-check what whole life asset management really covers.
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Santos
11 months ago
I’m a bit confused about the costs of quality mentioned in option C. Does that mean we shouldn't consider quality at all?
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Suzi
11 months ago
I remember a practice question that emphasized considering all associated costs, so I feel like option B might be correct.
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Allene
11 months ago
I think applying whole life asset management is important, but I'm not sure if it only focuses on price.
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Claribel
11 months ago
I'm a bit confused by this question. The way I see it, whole life asset management is about more than just the price. But I'm not sure if that means it's the right approach or not. I'll have to re-read the question and options carefully before deciding.
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Johnetta
11 months ago
Okay, I've got this. Whole life asset management means looking at the total cost of ownership, not just the sticker price. That includes things like installation, training, repairs, and disposal. So B is the right answer - it considers all the associated costs, not just the initial purchase.
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Edmond
11 months ago
Hmm, this is a tricky one. I'm not totally sure what "whole life asset management" means in this context. Is it just about the upfront cost, or does it include other factors like maintenance and operating costs? I'll have to think this through carefully.
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Denise
11 months ago
I think the key here is to focus on the concept of "whole life asset management." That sounds like it's referring to considering all the costs associated with the equipment, not just the initial purchase price. So I'm leaning towards B or D as the correct answers.
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Jimmie
11 months ago
This is a tricky one. I'm leaning towards Identification as the answer, since that's the first step in authentication, but I'll double-check my notes to be sure.
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An
11 months ago
This is a good question to test our understanding of procedural fairness. I'm confident that option B is the correct answer, as it directly addresses the perceived fairness of the complaint resolution process.
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Matilda
1 year ago
Whole life asset management? More like 'whole wallet asset management' if you ask me!
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Monroe
1 year ago
A: I agree, it's important to consider all costs when making procurement decisions
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Lindsey
1 year ago
B: No, because this covers various transactional costs
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Sheron
1 year ago
A: Yes, because this considers all associated costs
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Shawna
1 year ago
D? Transactional costs? Nah, that's not the focus of whole life asset management. It's all about the bigger picture, not just the little details.
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Blair
1 year ago
D) No, because this covers various transactional costs
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Cristen
1 year ago
C) No, because this considers the costs of quality
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Katlyn
1 year ago
B) Yes, because this considers all associated costs
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Alex
1 year ago
A) Yes, because this focuses only on the price of the equipment
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Ricarda
1 year ago
Haha, choosing the cheapest option is never the way to go! Whole life asset management is definitely the way to go, so I agree with answer B.
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Rose
1 year ago
Yes, it's not just about the initial price, but also the costs over the entire lifespan of the equipment.
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Leoma
1 year ago
I agree, whole life asset management is important to consider all associated costs.
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Donte
1 year ago
Absolutely, considering the long-term costs is essential for effective asset management.
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Leota
1 year ago
I agree, focusing on all associated costs is crucial when making procurement decisions.
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Virgina
1 year ago
I'm not sure about this one. I was thinking C might be the right answer, as it mentions the costs of quality, which is an important factor in asset management.
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Lashawna
1 year ago
A) Yes, because this focuses only on the price of the equipment
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Lauran
1 year ago
I think B is the correct answer. Whole life asset management considers all the associated costs, not just the initial price of the equipment.
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Filiberto
1 year ago
Whole life asset management helps in making informed decisions by considering all costs involved.
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Patti
1 year ago
Yes, focusing only on the price of the equipment may lead to unexpected costs in the long run.
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Glory
1 year ago
It's important to consider all associated costs when purchasing equipment for the laboratory.
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Lajuana
1 year ago
I agree, B is the correct answer. Whole life asset management looks at all costs, not just the initial price.
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Willodean
1 year ago
C) No, because this considers the costs of quality
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Timothy
1 year ago
B) Yes, because this considers all associated costs
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