CIPS Exam L3M3 Topic 4 Question 24 Discussion

Actual exam question for CIPS's L3M3 exam

Question #: 24
Topic #: 4

[All L3M3 Questions]

Which of the following would not normally be included in a whole life cost calculation?

APurchase price

BCost of setting up the tender

CDefective work, which needs to be rectified.

DInventory costs

Show Suggested Answer

Suggested Answer: B

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.

by Ligia at Sep 17, 2024, 02:20 PM

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Whitney

1 months 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!

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Lourdes

1 days ago

C) Defective work, which needs to be rectified.

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Natalie

4 days ago

B) Cost of setting up the tender

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Arminda

17 days ago

A) Purchase price

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Odelia

1 months ago

Whole life cost calculation? Sounds like a lot of fun, can I use a calculator that looks like a Bat-signal?

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Latrice

17 days ago

A) Purchase price

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Virgie

2 months ago

Wait, what? Inventory costs? Is this a trick question or something? That's gotta be the answer, right?

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Sherron

9 hours ago

Got it, thanks for clarifying!

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Adolph

11 days ago

The cost of setting up the tender is usually not included in the calculation.

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Hyman

12 days ago

Oh really? So, what would not normally be included then?

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Tijuana

16 days ago

No, inventory costs are actually included in a whole life cost calculation.

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Rikki

28 days ago

D) Inventory costs

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Dylan

1 months ago

C) Defective work, which needs to be rectified.

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Audra

1 months ago

C) Defective work, which needs to be rectified.

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Frankie

1 months ago

B) Cost of setting up the tender

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Latanya

1 months ago

B) Cost of setting up the tender

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Olen

1 months ago

A) Purchase price

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Elmer

2 months ago

A) Purchase price

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Jennifer

2 months 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.

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Amber

2 months 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.

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Micheal

23 days ago

I think it depends on the specific situation and how significant the defective work is.

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Suzi

24 days ago

I agree, it can be difficult to determine if the cost of rectifying defective work should be included in the calculation.

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Aja

27 days ago

D) Inventory costs

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Iesha

1 months ago

C) Defective work, which needs to be rectified.

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Tatum

1 months ago

B) Cost of setting up the tender

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Lenna

1 months ago

A) Purchase price

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Laticia

2 months ago

But what about A) Purchase price? Shouldn't that be included as well?

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Jillian

2 months ago

I agree with Desirae, because inventory costs are not directly related to the whole life cost calculation.

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Rocco

2 months 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.

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Paola

15 days ago

D) Inventory costs

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Isadora

1 months ago

C) Defective work, which needs to be rectified.

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Ettie

1 months ago

B) Cost of setting up the tender

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Rolf

2 months ago

A) Purchase price

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Desirae

2 months ago

I think D) Inventory costs would not normally be included.

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