MENU
Which of the following would not normally be included in a whole life cost calculation?
Suggested Answer: B
Get Premium L3M3 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
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.
50 comments · newest first
DA
Danica
11 months ago
Really? I thought all costs should be considered.
AI
Aileen
11 months ago
Yeah, I think setting up the tender is part of it too.
MA
Margo
12 months ago
Wait, are you saying defective work isn't included?
TR
Tran
12 months ago
Definitely not inventory costs!
LI
Linn
1 year ago
Whole life cost usually includes purchase price.
KE
Kenia
1 year ago
I feel like inventory costs might not be relevant here, but I can't recall if they are ever excluded in whole life cost calculations.
JO
Josphine
1 year ago
I practiced a similar question where defective work was mentioned, and I think that should be included in whole life costs.
AD
Adelle
1 year ago
I think the purchase price is definitely part of the calculation, but I'm a bit confused about the setup costs.
MA
Malcolm
1 year ago
I remember discussing whole life costs in class, but I'm not sure if inventory costs are typically included.
MA
Margart
1 year ago
Ah, this is a tricky one. I remember discussing whole life costing in class, but I can't quite recall all the specific elements that are included. I'll have to review my notes and try to reason this through step-by-step.
LA
Lai
1 year ago
Okay, let me see. The whole life cost is supposed to capture all the costs over the lifetime of the asset, right? So inventory costs would definitely be part of that. I'm leaning towards D as the answer.
LE
Lennie
1 year ago
I'm pretty confident about this one. The whole life cost calculation should include the purchase price, but not the cost of setting up the tender, which is more of an administrative expense.
LA
Launa
1 year ago
Hmm, I'm a bit unsure about this. I know the whole life cost includes things like maintenance and operating costs, but I'm not sure if defective work would be part of that. I'll have to think this through carefully.
WH
Whitney
1 year ago
Hmm, I wonder if the answer is a riddle in itself. 'What gets included in a whole life cost calculation, yet isn't normally there?' Ooh, the suspense!
GL
Glory
1 year ago
D) Inventory costs
LO
Lourdes
1 year ago
C) Defective work, which needs to be rectified.
NA
Natalie
1 year ago
B) Cost of setting up the tender
AR
Arminda
1 year ago
A) Purchase price
OD
Odelia
1 year ago
Whole life cost calculation? Sounds like a lot of fun, can I use a calculator that looks like a Bat-signal?
FR
Francisca
1 year ago
C) Defective work, which needs to be rectified.
RO
Rosalind
1 year ago
B) Cost of setting up the tender
LA
Latrice
1 year ago
A) Purchase price
VI
Virgie
2 years ago
Wait, what? Inventory costs? Is this a trick question or something? That's gotta be the answer, right?
SH
Sherron
1 year ago
Got it, thanks for clarifying!
AD
Adolph
1 year ago
The cost of setting up the tender is usually not included in the calculation.
HY
Hyman
1 year ago
Oh really? So, what would not normally be included then?
TI
Tijuana
1 year ago
No, inventory costs are actually included in a whole life cost calculation.
RI
Rikki
1 year ago
D) Inventory costs
DY
Dylan
1 year ago
C) Defective work, which needs to be rectified.
AU
Audra
1 year ago
C) Defective work, which needs to be rectified.
FR
Frankie
1 year ago
B) Cost of setting up the tender
LA
Latanya
1 year ago
B) Cost of setting up the tender
OL
Olen
1 year ago
A) Purchase price
EL
Elmer
2 years ago
A) Purchase price
JE
Jennifer
2 years ago
Inventory costs? Really? That seems a bit specific to include in a whole life cost calculation. I'm not convinced that's a normal consideration.
AM
Amber
2 years 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.
MI
Micheal
1 year ago
I think it depends on the specific situation and how significant the defective work is.
SU
Suzi
1 year ago
I agree, it can be difficult to determine if the cost of rectifying defective work should be included in the calculation.
AJ
Aja
1 year ago
D) Inventory costs
IE
Iesha
1 year ago
C) Defective work, which needs to be rectified.
TA
Tatum
1 year ago
B) Cost of setting up the tender
LE
Lenna
1 year ago
A) Purchase price
LA
Laticia
2 years ago
But what about A) Purchase price? Shouldn't that be included as well?
JI
Jillian
2 years ago
I agree with Desirae, because inventory costs are not directly related to the whole life cost calculation.
RO
Rocco
2 years 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.
PA
Paola
1 year ago
D) Inventory costs
IS
Isadora
1 year ago
C) Defective work, which needs to be rectified.
ET
Ettie
1 year ago
B) Cost of setting up the tender
RO
Rolf
2 years ago
A) Purchase price
DE
Desirae
2 years ago
I think D) Inventory costs would not normally be included.