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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

A manufacturer has discovered that some of the stock in its storeroom is obsolete and now wishes to take the appropriate action. Should the manufacturer write the stock off?

Options:

A.

No, the best approach would be to leave the stock where it is

B.

Yes, as it has no value it must be written off

C.

Yes, this will increase the sales for the period

D.

No, it should be included with the closing stock

Question 3

Buffer stock is a level of stock which...

Options:

A.

Is half of the actual stock that needs to be in the warehouse

B.

Is the minimum stock level below which actual stock should not fall

C.

Is the maximum stock in inventory

D.

Is when the physical ordering process should start to replenish used items

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