Certified Professional Public Buyer (CPPB) Practice Test

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What is the life cycle cost for the scanner purchased by the Sheriff’s Dept, considering its lifespan and maintenance costs?

$11,000
$29,000
$18,000
$36,000

The correct answer is: $29,000

The life cycle cost for the scanner is a comprehensive measure that includes not only the initial purchase price but also additional costs incurred over its lifespan. In this case, the calculation considers the total of acquisition costs, operation, maintenance, and any disposal expenses at the end of its useful life. When evaluating the options, a total of $29,000 reflects a detailed understanding of the ongoing financial impact of owning the equipment. This amount likely includes the purchase price, projected maintenance and repair expenses throughout the life of the scanner, and any operational costs such as power consumption or required accessories. By calculating these factors collectively, the chosen answer encapsulates the long-term investment aspect that public buyers must consider when assessing the value of a piece of equipment. This approach aligns with best practices in public procurement, where evaluating life cycle costs is crucial for making informed purchasing decisions that benefit the budget and efficiency of public services.