CIPS Exam L3M3 Topic 4 Question 24 Discussion

Actual exam question for CIPS's L3M3 exam

Question #: 24
Topic #: 4

[All L3M3 Questions]

Which of the following would not normally be included in a whole life cost calculation?

APurchase price

BCost of setting up the tender

CDefective work, which needs to be rectified.

DInventory costs

Show Suggested Answer

Suggested Answer: B

Consideration is one of the essential elements of a contract in English law, and it essentially means the exchange of something of value for something else of value, typically goods or services for money.

Normally it is the price to be paid in exchange for goods or services.

by Ligia at Sep 17, 2024, 02:20 PM

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Amber

10 hours ago

I think the cost of rectifying defective work is a tricky one. It's not always clear if that should be included or not.

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Laticia

2 days ago

But what about A) Purchase price? Shouldn't that be included as well?

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Jillian

6 days ago

I agree with Desirae, because inventory costs are not directly related to the whole life cost calculation.

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Rocco

10 days ago

Hmm, the purchase price is definitely included in a whole life cost calculation. I'm not so sure about the cost of setting up the tender though.

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Desirae

11 days ago

I think D) Inventory costs would not normally be included.

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