CIPS L4M2 Exam - Topic 3 Question 25 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 25
Topic #: 3

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?

AYes, because this focuses only on the price of the equipment

BYes, because this considers all associated costs

CNo, because this considers the costs of quality

DNo, because this covers various transactional costs

Show Suggested 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

Limited Time Offer

25%

Off

Get Premium L4M2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Ahmed

6 months ago

I thought whole life meant considering everything, not just price!

upvoted 0 times

...

Ena

6 months ago

Definitely not A, that's too narrow of a focus.

upvoted 0 times

...

Angelyn

7 months ago

Wait, does that mean quality costs are ignored? Sounds off.

upvoted 0 times

...

Gail

7 months ago

I agree, option B makes the most sense here.

upvoted 0 times

...

Marge

7 months ago

Whole life asset management looks at all costs, not just price!

upvoted 0 times

...

Lenna

7 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.

upvoted 0 times

...

Santos

7 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?

upvoted 0 times

...

Suzi

7 months ago

I remember a practice question that emphasized considering all associated costs, so I feel like option B might be correct.

upvoted 0 times

...

Allene

8 months ago

I think applying whole life asset management is important, but I'm not sure if it only focuses on price.

upvoted 0 times

...

Claribel

8 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.

upvoted 0 times

...

Johnetta

8 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.

upvoted 0 times

...

Edmond

8 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.

upvoted 0 times

...

Denise

8 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.

upvoted 0 times

...

Jimmie

8 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.

upvoted 0 times

...

An

8 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.

upvoted 0 times

...

Matilda

1 year ago

Whole life asset management? More like 'whole wallet asset management' if you ask me!

upvoted 0 times

Monroe

11 months ago

A: I agree, it's important to consider all costs when making procurement decisions

upvoted 0 times

...

Lindsey

11 months ago

B: No, because this covers various transactional costs

upvoted 0 times

...

Sheron

12 months ago

A: Yes, because this considers all associated costs

upvoted 0 times

...

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.

upvoted 0 times

Blair

12 months ago

D) No, because this covers various transactional costs

upvoted 0 times

...

Cristen

1 year ago

C) No, because this considers the costs of quality

upvoted 0 times

...

Katlyn

1 year ago

B) Yes, because this considers all associated costs

upvoted 0 times

...

Alex

1 year ago

A) Yes, because this focuses only on the price of the equipment

upvoted 0 times

...

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.

upvoted 0 times

Rose

1 year ago

Yes, it's not just about the initial price, but also the costs over the entire lifespan of the equipment.

upvoted 0 times

...

Leoma

1 year ago

I agree, whole life asset management is important to consider all associated costs.

upvoted 0 times

...

Donte

1 year ago

Absolutely, considering the long-term costs is essential for effective asset management.

upvoted 0 times

...

Leota

1 year ago

I agree, focusing on all associated costs is crucial when making procurement decisions.

upvoted 0 times

...

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.

upvoted 0 times

...