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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

Which of the following represents the end-of-life cost of an asset?

Options:

A.

Payment of the suppliers' final invoice after the asset is commissioned

B.

The cost of replacing the asset if it is damaged in an accident

C.

The cost of decommissioning and scrapping the asset

D.

Disposal of waste generated from use

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Question 2

The size of order that minimises the total cost of acquiring and holding stock is known as...

Options:

A.

Order quantity

B.

Economic Order Quantity

C.

The correct quantity

D.

Average stock

Question 3

An organisation always obtains negative cash flow regarding removal and disposal of assets. Is this statement true?

Options:

A.

No, the organisation may recover the value of the assets by reselling it

B.

Yes, the organisation incurs high maintenance cost during the disposal processes

C.

Yes, some assets require enormous decommissioning costs

D.

No, disposal of assets always bring positive cash flow to the organisation

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