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IAM The Institute of Asset Management Certificate Sample Questions (Q89-Q94):

NEW QUESTION # 89
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 sum of the maintenance and operating costs divided by the service life of the asset in years
C. The sum of the costs in the Create, Operate, Maintain and Disposal phases
D. The life cycle costs divided by the service life of the asset in years
E. The annual capital investment costs in the create and mid-life upgrade phases

Answer: D

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 # 90
What is PAS 55?

A. A BSI Previously Available Specification for the optimized management of physical assets
B. A BSI Previously Available Specification for the optimized management of financial assets
C. A BSI Publically Available Specification for the optimized management of physical assets
D. A BSI Publically Available Specification for the optimized management of financial assets

Answer: C

NEW QUESTION # 91
To successfully establish, operate and improve asset management within an organisation, it is essential that leadership, and commitment, is demonstrated by all levels of management - from senior executives to supervisors.

A. False
B. True

Answer: B

Explanation:
Leadership and commitmentfrom all tiers of the organization are foundational to the success of any asset management system. ISO 55001 places special emphasis onvisible support from top management, which sets the tone for engagement, resource allocation, and continuous improvement.
* Without this leadership, asset management initiatives often fail to embed within the culture or gain strategic relevance.
Exact Extract from ISO 55001:2014, Clause 5.1 - Leadership and Commitment:
"Top management shall demonstrate leadership and commitment with respect to the asset management system by ensuring the integration of asset management requirements into the organization's business processes."

NEW QUESTION # 92
According to ISO 55000, assets is .....

A. Processed, organized and structured data
B. A type of investment that represents an ownership share in a company
C. Refers to all the materials available in our environment
D. Item, thing or entity that has potential or actual value to an organization.

Answer: D

NEW QUESTION # 93
Which of the following types of information would NOT normally be required for the development of an asset management plan?

A. Asset Register
B. Asset Condition
C. Organisation's share price
D. Asset Critically

Answer: C

NEW QUESTION # 94
......

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