CIPS Whole Life Asset Management (L4M7) 2025 – 400 Free Practice Questions to Pass the Exam

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What are acquisition costs primarily associated with?

Costs of employee training

Costs of acquiring inventory items, including purchase and delivery

Acquisition costs are primarily associated with the expenses incurred during the process of acquiring inventory items. This includes not just the purchase price of the items themselves but also additional costs that arise, such as transportation and delivery fees. These costs are essential to consider because they directly impact the overall investment required to bring inventory into a business's operational framework.

In contrast to other options, employee training costs relate more to workforce development rather than the physical acquisition of goods. Selling finished goods involves costs associated with marketing and distribution after inventory has already been acquired. Focusing solely on production materials neglects the broader scope of costs associated with acquiring inventory, as acquisition costs encompass a wider array of expenses related to the logistics and procurement process.

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Costs of selling finished goods

Costs of production materials only

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