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IAM The Institute of Asset Management Certificate Sample Questions:

1. What is the purpose of whole-life cost analysis?

A) To determine the renewal costs at the end of an asset's life
B) To determine the option for a particular decision which has the lowest costs over the life of the asset
C) To determine the most important costs associated with an asset

2. What is the Asset Life Cycle?

A) A substitute for quality management
B) A project management system
C) A strategic and analytical approach to the management of a business's assets
D) All False

3. Which of the following statements best describes the difference between an Asset Management Policy and an Asset Management Strategy?

A) Policy defines objectives and time; strategy defines principles
B) Policy defines principles; strategy defines objectives and time
C) Policy defines principles; strategy certifies condition
D) Policy defines objectives and time; strategy summarizes work plans
E) Policy defines financial trade-offs; strategy summarizes planning

4. How many elements does the IAM Asset Management Conceptual Model contain?

A) Four
B) Seven
C) Six
D) Five

5. Which of the following is most likely to reduce a company's income?

A) Interest rates
B) Increased number of asset failures that affect service levels
C) Ageing assets
D) Capital investment in new assets
E) Poor asset condition

Solutions: