CIPS L4M2 Defining Business Need · Free Practice Question Easy
Question 3
- A it must be replaced
- B it is now out-of-date
- C it is being withdrawn from active use
- D it no longer works
Reveal correct answer
Correct answer: C
Explanation
Decommissioning is withdrawing an asset from active use. It doesn't necessarily mean it's broken, outdated or that it's being replaced with a new asset. It could just be the case that the company no longer wants that asset. For example a pizza manufacturing company may decide to stop making ham and pineapple pizzas because they're no longer popular with customers. They may have a pineapple coring machine they use which they will now decommission. The machine may be perfectly functioning, but they don't need/ want it any more. It's simply being retired from active use.
See p. 140
Discussion
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