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IAM Certification
IAM-Certificate Exam
IAM.IAM-Certificate.v2025-12-23.q55 Dumps

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Question 36

Capital Investment Decision-Making comprises the processes to .....

A.Evaluate and analyse options for the creation of new assets
B.Decreasing the capability of assets
C.The replacement of modal at the end of their useful life
D.All false

Correct Answer: A

Capital Investment Decision-Making is a structured process that evaluatesinvestment options, typically considering total lifecycle cost, business value, and risk. While asset replacement may be a consequence, the broader goal is optimization of value creation through new asset deployment.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.3.3 - Capital Investment Decision-Making:
"This includes identification, evaluation, and prioritization of investment options to create, upgrade or renew assets in alignment with organizational objectives."

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Question 37

Which of the following is the LEAST important factor when considering the decommissioning of assets?

A.Changes in performance levels to deliver the objectives for the organization
B.Obsolescence and lack of spare parts
C.Reduction in demand
D.New technology in the market place
E.Changes to legislation

Correct Answer: A

While performance degradation is important, it is typicallymanaged operationally.Obsolescence, legal requirements, and demand changesare more critical decommissioning drivers due to their irreversible or non-negotiable nature.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 3.4.5 - Disposal:
"Key triggers for asset disposal include: obsolescence, unavailability of parts, legislative change, and declining demand."

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Question 38

When undertaking whole-life cost analysis it is important to remember that:

A.It is impossible to get the right answer unless all the data and information are understood
B.The analysis should be completed without reference to other organisational functions to ensure independence
C.As many costs as possible should be included in the analysis ensuring these are consistently derived between analyses

Correct Answer: A

WhileOption Cis also valid practice,Option Ais more fundamental. Without complete and accurate data, whole-life cost models may lead to flawed conclusions, undermining decision-making.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.5.2 - Cost Modelling:
"Accuracy and completeness of input data are critical to ensuring reliability in whole-life cost analysis."

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Question 39

What Is the Asset Life Cycle?

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

Correct Answer: D

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Question 40

IAM-based decisions produce real savings, where savings develop from,except......

A.Efficiency gains
B.Cost Avoidance
C.Compliment asset
D.Cost Effectiveness

Correct Answer: C

IAM-compliant practices help generate organizational savings by improving efficiency, reducing unnecessary costs, and enabling cost-effective decision-making. These outcomes are typically derived from structured planning and lifecycle optimization.
* Efficiency Gains: Streamlining processes to use fewer resources.
* Cost Avoidance: Proactively preventing unnecessary expenditure through better decisions.
* Cost Effectiveness: Choosing actions that yield the best return on investment.
Compliment Assetis not a relevant financial or asset management term-it appears to be a typographical or conceptual error and is therefore the correct answer to identify as invalid.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 2.2 - The Benefits of Asset Management:
"Benefits include cost reduction, efficiency gains, increased asset performance, and risk-informed cost avoidance."

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