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CIPS Whole Life Asset Management L4M7 Question # 17 Topic 2 Discussion

CIPS Whole Life Asset Management L4M7 Question # 17 Topic 2 Discussion

L4M7 Exam Topic 2 Question 17 Discussion:
Question #: 17
Topic #: 2

In order to control the costs of holding inventory, the manager has decided to install CCTV cameras in the warehouse. This will help to deter potential pilferage (theft) by the warehouse operatives. Is this the correct way of managing costs of holding inventory?


A.

Yes, the warehouse operatives should always be under watch because all of them tend to be involved in pilferage


B.

Yes, because when pilferage is under control then other costs of holding inventory automatically come under control


C.

No, the cost of installing and operating CCTV cameras may not be justified by pilferage costs that are likely to be a small element of the total cost of holding inventory


D.

No, pilferage and the overall cost of holding inventory could be controlled more efficiently by stocking similar items in different locations under different names.


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