CIPS Exam L4M2 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?

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

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Matilda

1 months ago

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

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Lindsey

2 days ago

B: No, because this covers various transactional costs

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Sheron

13 days ago

A: Yes, because this considers all associated costs

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Shawna

2 months 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

14 days ago

D) No, because this covers various transactional costs

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Cristen

1 months ago

C) No, because this considers the costs of quality

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Katlyn

1 months ago

B) Yes, because this considers all associated costs

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Alex

1 months ago

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

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Ricarda

2 months 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 months 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 months ago

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

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Donte

2 months ago

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

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Leota

2 months ago

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

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Virgina

2 months 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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