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IAM The Institute of Asset Management Certificate Sample Questions (Q100-Q105):
NEW QUESTION # 100
Which of the following phrases describes best the key advantage of asset management over traditional approaches?
- A. Asset management takes an optimised whole-life view of the work required on the asset portfolio to ensure current and future required levels of service are delivered
- B. Asset management is primarily concerned with ensuring that resources are optimally used by putting into place effective planning regimes and processes to continually improve staff competence
- C. Asset management ensures all asset interventions (for example maintenance or renewal intervals) are optimised with respect to risk
Answer: B
NEW QUESTION # 101
Which of the following has the biggest impact on cash flows?
- A. Return on capital employed
- B. Balance sheet
- C. Operational Expenditure (Opex)
- D. Depreciation
- E. EBITDA
Answer: C
Explanation:
Operational Expenditure (Opex) includes recurring costs that directly affect an organization's cash outflows
, such as energy, labor, and service delivery costs. Depreciation is non-cash.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 2.3 - Financial Management:
"Operating expenditure (Opex) is a key factor in cash flow planning and often dominates lifecycle cost models."
NEW QUESTION # 102
Based on ISO 55000 regarding asset management system, which of the following statements is false!
- A. Provides a documented foundation for the asset management operation
- B. Is application agnostic
- C. Is a regulation to help the organization
- D. Is not a software
Answer: C
NEW QUESTION # 103
What is good practice to be included in an asset management policy?
- A. A statement of commitment to comply with regulations, a list of the top risks to the organisation, principles guiding the development of the asset management strategy and objectives.
- B. A statement of commitment to comply with regulations, a commitment to continuous improvement, and principles guiding the development of the asset management strategy and objectives.
- C. A statement of commitment to comply with regulations, a commitment to continuous improvement, and the asset management strategy.
- D. A statement of commitment to comply with regulations, budget for the next five years, a commitment to continuous improvement, principles guiding the development of the asset management strategy and objectives.
- E. A statement of commitment to comply with regulations, a commitment to continuous improvement, a detailed plan of the work for the following year.
Answer: B
Explanation:
An effectiveAsset Management Policyoutlines the organization's high-level intent and principles regarding asset management. It doesnot include specific budgetary or operational detailslike annual plans.
Exact Extract from ISO 55001:2014, Clause 5.2 - Asset Management Policy:
"Shall include a commitment to satisfy applicable legal requirements, continual improvement, and provide a framework for setting asset management objectives and strategy."
NEW QUESTION # 104
Investment proposals should align with the delivery of...
- A. The CEO's personal objectives
- B. Key Performance Indicators
- C. Company Values
- D. Departmental Objectives
- E. Strategic Objectives
Answer: E
Explanation:
All investment decisions in asset management shouldclearly support strategic objectivesto ensure value alignment, budget justification, and long-term relevance.
Exact Extract from ISO 55001:2014, Clause 6.2 - AM Objectives and Planning:
"Asset management objectives and investment plans must align with the organization's strategic objectives."
NEW QUESTION # 105
......
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