Exam L4M7 Topic 10 Question 17 Discussion

Actual exam question for CIPS's L4M7 exam
Question #: 17
Topic #: 10
Which of the following purchases are most likely to have low acquisition costs? Select TWO that apply.

Suggested Answer: B,C Vote an answer

According to L4M7 study guide, acquisition costs in procurement are the costs associated with the activities involved in a purchase. A buying organisation incurs acquisition costs in low-value purchases as well as high- value purchases. The following purchases tend to have lower acquisition costs:
- Straight re-buy from a current supplier
- Purchase of standard catalogued products
Otherwise, any purchases of high value, high-risk items generally require greater attention of buying organisation and thus, they are likely to have higher acquisition costs. Spot purchase of a technically complexed machinery, Purchase of ERP system and Procurement of construction projects are examples of high-value, high-risk purchases.

by Alice at Jan 18, 2026, 05:53 AM

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