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IAM The Institute of Asset Management Certificate Sample Questions (Q59-Q64):

NEW QUESTION # 59
Ignoring the time-based value of money, in Whole Life Cost Modelling, annualised costs are:

A. The annual costs to operate and maintain the asset
B. The annual capital investment costs in the create and mid-life upgrade phases
C. The sum of the costs in the Create, Operate, Maintain and Disposal phases
D. The sum of the maintenance and operating costs divided by the service life of the asset in years
E. The life cycle costs divided by the service life of the asset in years

Answer: E

Explanation:
Annualised cost is a financial technique used todistribute lifecycle costs evenly over the asset's useful life.
It provides a normalized basis for comparison of alternatives.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.5.1 - Whole-Life Costing:
"Annualised lifecycle cost = Total lifecycle cost / Estimated service life. This method allows direct comparison between asset options with different expected lives."

NEW QUESTION # 60
The benefits of an asset management system are...

A. A-B-C are true
B. Establish roles and responsiblities
C. Formalizes asset management
D. Bring best practices into the organization

Answer: A

NEW QUESTION # 61
Which of the following statements is true?

A. Strategic planning explicitly considers the life cycle of the assets and the interdependencies between each of the life cycle stages
B. Strategic planning is describes how the organisation will develop and improve its asset management capabilities
C. Strategic planning is usually undertaken as part of the overall organisational management
D. Strategic planning is the process for establishing asset management objectives and developing the asset management strategy

Answer: D

Explanation:
Strategic asset management planningis the process of translating the organization's high-level objectives intotangible asset management strategiesand performance targets.
* Option Arefers to capability development (partially true but incomplete).
* Option Bis correct as per ISO 55001 and IAM guidance.
* Option Cis general and non-specific.
* Option Dis relevant, but more operational in scope.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.3.2 - Strategic Planning:
"Strategic planning links the organization's objectives to asset management objectives, setting out how the organization intends to manage its assets in alignment with these broader goals."

NEW QUESTION # 62
Effective asset management can enhance an organization's reputation and its ability to .......?

A. Meet its regulatory and statutory obligations
B. Reduce the cost of managing assets over their lives.
C. Operate safely.
D. All true

Answer: D

NEW QUESTION # 63
Which of the following best describes the 'useful life' of an asset?

A. Time until the asset is physically non-functioning
B. Period for which the asset can economically perform a required function
C. Time until the asset is fully depreciated
D. Time specified by OEM
E. Time until maintenance costs exceed stakeholder thresholds

Answer: B

Explanation:
Useful lifeis determined not by age, cost, or accounting rules-but by theeconomic abilityof the asset to deliver required service. This includes operational efficiency, cost-effectiveness, and supportability.
Exact Extract from ISO 55000:2014, Clause 3.2.10 - Useful Life:
"The period over which an asset is expected to be usable for its intended purpose and deliver value economically."

NEW QUESTION # 64
......

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IAM The Institute of Asset Management Certificate Sample Questions (Q59-Q64):

IAM-Certificate Exam Duration, IAM Reliable IAM-Certificate Exam Dumps: The Institute of Asset Management Certificate Pass Certainly

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