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CIPS L4M7 Exam - Topic 2 Question 75 Discussion

What is meant by the economic life of an asset?
A) It is the age beyond which it is not worth keeping an asset from a cost point of view
B) It is the point beyond which it is not possible to find anyone who has the skills to operate the asset
C) It is when the asset's effective performance is below the standard required by the organisation
D) It is the point beyond which it is not possible to obtain any spare parts for the asset

CIPS L4M7 Exam - Topic 2 Question 75 Discussion

Actual exam question for CIPS's L4M7 exam
Question #: 75
Topic #: 2
[All L4M7 Questions]

What is meant by the economic life of an asset?

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Suggested Answer: A

by Lucille at Jun 20, 2026, 05:27 PM

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Glenn
14 days ago
D makes sense too. No spare parts means it's time to let go.
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Rashida
19 days ago
I lean towards C. Performance matters most for the organization.
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Tonette
25 days ago
I think it's A. Cost is key for keeping an asset.
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Jestine
30 days ago
Performance standards definitely play a big role, so C is valid too.
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Douglass
1 month ago
Wait, can an asset really be useless just because parts are gone?
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Terrilyn
1 month ago
I don't think it's just about cost, though. What about skills?
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Selma
2 months ago
Totally agree, option A makes the most sense!
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Blair
2 months ago
It's basically when keeping the asset isn't cost-effective anymore.
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Rebeca
2 months ago
I’m confused about this one. I thought economic life was more about maintenance and parts availability, which could relate to option D.
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Julieta
2 months ago
I feel like we covered something similar in class, and I think it was about the age of the asset, which could point to option A again.
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Anjelica
2 months ago
I remember discussing how an asset's performance impacts its value, which makes me lean towards option C, but I'm not entirely sure.
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Yvonne
2 months ago
I think the economic life of an asset relates to its cost-effectiveness, so maybe option A is correct?
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