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IAM The Institute of Asset Management Certificate Sample Questions (Q19-Q24):

NEW QUESTION # 19
What are the main cost elements of a whole-life cost approach?

A. Asset deterioration and reliability costs
B. Maintenance, associated financing costs, refurbishment, and disposal costs
C. Installation, failure and refurbishment costs
D. Installation, maintenance and operations, and disposal costs

Answer: D

Explanation:
Whole-life cost elementsinclude costs incurred from the point of asset creation to its final disposal. This covers:
* Installation
* Operations & Maintenance
* Disposal or decommissioning
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.5.1:
"Key cost elements include initial acquisition, installation, maintenance, operation, and final disposal costs."

NEW QUESTION # 20
A definition of asset management is:

A. The optimal life cycle management of physical assets to sustainably achieve the stated business objectives
B. The optimal maintenance an organisation undertakes on its assets
C. A grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations
D. A clear understanding of the linkages between each stage in the asset lifecycle

Answer: A

Explanation:
Thecorrect and widely accepted definition of asset management-particularly as defined by ISO 55000- is thecoordinated activityto realizevalue from assetsthroughlifecycle managementaligned with strategic goals.
Exact Extract from ISO 55000:2014, Clause 3.3.1 - Asset Management:
"The coordinated activity of an organization to realize value from assets."

NEW QUESTION # 21
What are the main cost elements of a whole-life cost approach?

A. Asset deterioration and reliability costs
B. Installation, failure and refurbishment costs
C. maintenance, associated financing costs refurbishment, and disposal costs
D. Installation, maintenance and operations, and disposal costs

Answer: D

NEW QUESTION # 22
In what year did the term "asset management" start to be used!

A. 0
B. 1
C. 2
D. 3

Answer: C

NEW QUESTION # 23
Characteristics of organisational context that affect what is achievable and worthwhile in asset management fall into three categories:

A. Scale and complexity of the asset portfolio
B. All above true
C. Volatility of the business environment
D. Asset systems criticality

Answer: B

Explanation:
Theorganizational contextdetermines how asset management strategies and objectivesare tailored. It includes internal and external factors such as asset complexity, environmental volatility, and the criticality of systems to business continuity.
Exact Extract from ISO 55001:2014, Clause 4.1 - Understanding the Organization and its Context:
"The organization shall determine external and internal issues relevant to its purpose and that affect its ability to achieve the intended outcomes of its asset management system."

NEW QUESTION # 24
......

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