IAM-Certificate IAM The Institute of Asset Management Certificate Free Practice Exam Questions (2025 Updated)

Useful lifeis determined not by age, cost, or accounting rules—but by theeconomic abilityof the asset to deliver required service. This includes operational efficiency, cost-effectiveness, and supportability.

Exact Extract from ISO 55000:2014, Clause 3.2.10 – Useful Life:

“The period over which an asset is expected to be usable for its intended purpose and deliver value economically.”

Frequent asset failures result indisruption, penalties, customer dissatisfaction, andlost revenue. This has adirect impact on incomemore than long-term financial or condition-based issues.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 2.2 – Business Impact of AM:

“Poor reliability or failure of assets directly affects service levels and revenues, leading to reputational and financial consequences.”

Comprehensive and Detailed in Depth Explanation along with Exact Extract from IAM's five subject areas:

TheAcquirestage encompasses feasibility studies, planning, specification, design, procurement, and funding—the preparatory activities before an asset is commissioned.

Extract from IAM Document – Asset Management: An Anatomy (v4):

"The acquisition phase includes the activities required to define, justify, plan, design, and procure the asset."

(Section 3.4.1 – Life Cycle Stage: Acquire)

‘Line of sight’ is a key concept in IAM, referring to how all actions—regardless of position or role—are visibly and logically aligned to the organization's asset management objectives.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 1.5 – Line of Sight:

“Line of sight is achieved when everyone in the organization understands how their activities contribute to delivering value from assets.”

Comprehensive and Detailed in Depth Explanation along with Exact Extract from IAM's five subject areas:

The asset lifecycle includes stages from planning and procurement (acquire), initial setup (commission), use (operate), and eventual retirement (dispose).

Extract from IAM Document – Asset Management: An Anatomy (v4):

"Asset life cycle stages typically include: Acquire, Commission, Operate, Maintain, and Dispose."

(Section 3.4 – The Asset Life Cycle)

Information collection must bepurpose-driven, not exhaustive or IT-defined. IAM emphasizes the“fitness-for-purpose”principle: collect only the data required to inform decision-making.

Exact Extract from IAM – Asset Information: Strategy, Management and Governance:

“Information requirements must be defined based on decision-making needs, not system capability or departmental standards.”