CIPS M4L8 (Procurement and Supply) LO3 QUESTIONS AND ANSWERS RATED A.

CIPS M4L8 (Procurement and Supply) LO3
QUESTIONS AND ANSWERS RATED A.
What are the disadvantages of buying assets?
Correct Answer -- depreciation has to be calculated
- more difficult to upgrade
- maintenance costs are incurred
What are the advantages of leasing assets?
Correct Answer -- no initial capital outlay
- total amount payable is known
- budgeting is easier
- fewer tax and depreciation calculations
what are the disadvantages of leasing assets?
Correct Answer -- commitment to payment over an agreed period of time
- overall price may be higher than if bought outright
- ownership never transfers
- could be limits on usage
what departments are involved in whole life asset management?
Correct Answer -- marketing
- finance
- research and design
- operations
- sales
- human resources