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CIPS L4M7 Exam - Topic 10 Question 66 Discussion

Actual exam question for CIPS's L4M7 exam
Question #: 66
Topic #: 10
[All L4M7 Questions]

Which of the following is an acquisition cost under the concept of the total cost of ownership?

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Suggested Answer: A

Acquisition costs include all expenses incurred to bring an asset to its operational state, such as installation and commissioning. These costs are essential to the total cost of ownership (TCO) in whole-life asset management, helping organizations understand the full initial investment required to make the asset usable.


by Domonique at Nov 25, 2025, 10:48 AM

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Gilberto
15 hours ago
I think B) Consumables and energy cost should count too!
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Stephanie
6 days ago
B) Consumables and energy cost is the way to go. Gotta keep that machine running!
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Bo
11 days ago
Haha, the answer is obviously E) Buying a lottery ticket to cover all these costs!
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Mollie
16 days ago
Hmm, I'm torn between B) and C). Servicing and repair can really add up over time.
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Lenny
21 days ago
A) Installation and commissioning cost, for sure. That's a major part of the initial investment.
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Tegan
26 days ago
I practiced a similar question where downtime was mentioned, and I think that’s more about operational costs too.
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Whitney
1 month ago
I feel like servicing and repair costs might be part of total ownership, but I'm not clear if they fit under acquisition specifically.
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Weldon
1 month ago
I think consumables and energy costs are more related to ongoing expenses rather than acquisition costs.
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Mitsue
1 month ago
I remember we discussed acquisition costs in class, but I’m not sure if installation and commissioning costs count as acquisition or operational.
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Socorro
2 months ago
This seems straightforward. I'm pretty confident the acquisition cost would include the installation and commissioning, so I'll go with option A.
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Elli
2 months ago
I think the key is to focus on the term "acquisition cost" specifically. That should help me narrow down the options and select the right answer.
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Anglea
2 months ago
I'm a bit confused on the difference between acquisition cost and the other cost categories here. I'll need to review my notes to make sure I understand this properly.
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Miesha
2 months ago
I'd go with D) Down time and overhaul cost. That's a hidden cost we often overlook.
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Lettie
2 months ago
A) Installation and commissioning cost is definitely an acquisition cost.
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Cecil
2 months ago
I think A is the right choice. Installation is crucial.
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Diane
3 months ago
B) Consumables and energy cost is the correct answer. It's a clear acquisition cost under the total cost of ownership.
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Ozell
3 months ago
Okay, let's see. I know acquisition cost is part of the total cost, so I'll need to consider which of these options fits that category.
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Frank
3 months ago
Hmm, this looks like a tricky one. I'll need to think carefully about the concept of total cost of ownership to figure this out.
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Ona
3 months ago
Don't forget about consumables and energy costs!
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