IAPP CIPM Online Practice Questions and Exam Preparation

IAPP CIPM Online Questions & Answers

• Question 461:

  What may vary depending upon the interest rates, the credit rating of the firm, and the opportunities the firm may have for investment?

  A. Capital cost
  B. Inventory cost
  C. Normal cost
  D. Item cost
  A. Capital cost

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  Explanation

  Capital cost (or cost of capital) can vary based on interest rates, a firm's credit rating, and its investment opportunities. It represents the opportunity cost of investing resources in inventory or other assets rather than elsewhere.

• Question 462:

  An organization has determined that it needs to retain customer records for at least thirty years to discover generational trends in customer behavior. However, relevant local regulation requires that all Personally Identifiable Information (PII) is deleted after expiration of the customer's engagement with the organization, which is usually no longer than one year. How should the data be handled at the expiration of customer engagement at one year?

  A. Because the data contains PII, it should be backed up in an encrypted form, with the encryption key securely kept in a Hardware Security Module (HSM), and all access logged and monitored.
  B. The data should be deleted from the customer website, and archived to a write-once, read-many drive to securely meet the business requirement for analytics.
  C. PII portion of the data should be tokenized or deleted, and the rest of the data stored securely to meet the business requirement for analytics.
  D. Since legal and regulatory compliance takes priority over business requirements, the data should be deleted.
  C. PII portion of the data should be tokenized or deleted, and the rest of the data stored securely to meet the business requirement for analytics.

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  Explanation

• Question 463:

  When an organization is recruiting for roles within the organization, at which stage of the employee life cycle are termination procedures incorporated?

  A. Security training
  B. Orientation
  C. User provisioning
  D. Background check
  B. Orientation

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  Explanation

• Question 464:

  The production plan defines which of the following targets?

  A. Sales forecast
  B. Quantities of each product to be produced
  C. Level of output to be produced
  D. Business plans for the company
  C. Level of output to be produced

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  Explanation

  The production plan is a high-level plan that defines the level of output to be produced for each product family or group in a given time perioD: It is based on the sales forecast, the aggregate production capacity, and the desired inventory levels. The production plan does not specify the quantities of each individual product to be produced, as this is done in the master production schedule. The production plan also does not include the sales forecast or the business plans for the company, as these are inputs to the production plan, not outputs

• Question 465:

  Independent demand must be

  A. Forecast
  B. Calculated
  C. Show the required quantity of each component
  D. Dependent demand items
  A. Forecast

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  Explanation

  Independent demand refers to the demand for finished goods or end items (e.g., cars, computers), which is: Driven by external market demand Not directly tied to the demand for other items Therefore, it must be forecasted using sales trends, historical data, or market analysis

  Other options:

  B: Calculated: Applies to dependent demand, not independent.

  C: Show the required quantity of each component: Describes Bill of Materials or dependent demand.

  D: Dependent demand items: Opposite of independent demand.

  So, the correct answer is A: Forecast.

• Question 466:

  Which of the following environments is most suitable for the use of kanban systems?

  A. Short product life cycles
  B. High levels of customization
  C. Intermittent production
  D. Stable and predictable demand
  D. Stable and predictable demand

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  Explanation

  Kanban systems work best in environments with stable and predictable demand, allowing for smooth, continuous flow of materials and minimizing inventory while avoiding disruptions.

• Question 467:

  An organization is attempting to address the security risk introduced by employees writing down door entry passcodes. Which of the following security measures BEST mitigates this risk?

  A. Privileged Access Management (PAM) policy
  B. Multi-Factor Authentication (MFA)
  C. Video log monitoring
  D. Notification alerts
  B. Multi-Factor Authentication (MFA)

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  Explanation

• Question 468:

  A systems engineer has been tasked by management to provide a recommendation with a prioritized, focused set of actions to help the organization stop high-risk cyber attacks and ensure data security. What should the systems engineer recommend the organization use to accomplish this?

  A. Center for Internet Security critical security controls
  B. Control Objectives for Information and Related Technology (COBIT)
  C. Inventory baseline controls
  D. Security content automation protocol controls
  A. Center for Internet Security critical security controls

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  Explanation

• Question 469:

  Which of the following sampling techniques is BEST suited for comprehensive risk assessments?

  A. Convenience sampling
  B. Snowball sampling
  C. Judgement sampling
  D. Systematic sampling
  D. Systematic sampling

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  Explanation

• Question 470:

  Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet?

  A. Decreased fixed assets
  B. Decreased retained earnings
  C. Increased accounts receivable
  D. Increased intangible assets
  A. Decreased fixed assets

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  Explanation

  Using third-party logistics (3PL) services allows a company to outsource warehousing, transportation, and distribution, which means the company no longer needs to own and maintain these assets. As a result, this typically leads to a reduction in fixed assets on the balance sheet.