CIPS Exam L3M2 Topic 4 Question 19 Discussion

Actual exam question for CIPS's L3M2 exam

Question #: 19
Topic #: 4

[All L3M2 Questions]

'The usefulness of lifetime costing is for decision-making about whether to acquire an asset with an expected:

AShort life

BLong life

CAfter life

DShelf life

Show Suggested Answer

Suggested Answer: A

Quality.

Specification is fundamental to receiving the right quality.

Standards can be seen as a form of specification intended for recurrent use (Lysons)

by Ciara at Sep 12, 2024, 03:47 PM

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Corinne

3 days ago

I'm not sure, but I think it's A) Short life because you need to consider costs over the entire lifespan of the asset.

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Felton

4 days ago

I agree with Whitney, lifetime costing is important for assets with long life.

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Whitney

7 days ago

I think the answer is B) Long life.

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Trevor

7 days ago

Definitely B. Lifetime costing is most useful for assets with a long life, where the ongoing operational and maintenance costs can make a big difference.

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