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?

AInstallation and commissioning cost

BConsumables and energy cost

CServicing and repair cost

DDown time and overhaul cost

Show Suggested Answer

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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Phil

1 month ago

B shows the long-term impact on costs.

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Paola

1 month ago

A covers initial expenses well.

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Tiera

2 months ago

D is important, but not an acquisition cost.

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Merrilee

2 months ago

C makes sense too. Servicing is part of ownership.

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Sherrell

2 months ago

I lean towards B. Consumables are ongoing costs.

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Twana

2 months ago

I never thought about it this way, interesting perspective!

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Scot

2 months ago

Totally agree with A and C being acquisition costs!

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Carlene

2 months ago

Wait, are we sure D) Down time and overhaul cost is an acquisition cost?

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Gilberto

3 months ago

I think B) Consumables and energy cost should count too!

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Stephanie

3 months ago

B) Consumables and energy cost is the way to go. Gotta keep that machine running!

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Bo

3 months ago

Haha, the answer is obviously E) Buying a lottery ticket to cover all these costs!

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Mollie

4 months ago

Hmm, I'm torn between B) and C). Servicing and repair can really add up over time.

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Lenny

4 months ago

A) Installation and commissioning cost, for sure. That's a major part of the initial investment.

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Tegan

4 months 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

4 months 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

4 months ago

I think consumables and energy costs are more related to ongoing expenses rather than acquisition costs.

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Mitsue

4 months 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

5 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

5 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

5 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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