CIPS Level 4 Whole Life Asset Management L4M7 · Free Practice Question Easy
Question 8
Which of the following are classified as part of the acquisition cost for an asset? Select TWO that apply.
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A
Purchase price costs
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B
Tender costs
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C
Decommissioning cost
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D
Maintenance cost
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E
Operating costs
Reveal correct answers
Correct answers: A, B
Explanation
Acquisition cost refers to the all-in cost to purchase an asset. These costs include tender cost, purchasing price cost, shipping, sales taxes, and customs fees, as well as the costs of site preparation, installation, and testing.
Discussion
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