Which option describes a basic acquisition budget and allocation?

• A. Budget includes purchase price, taxes/shipping/insurance, conservation, framing, storage, contingency; allocate to core works with proven provenance, mid-tier diversification, and reserves for conservation and unforeseen fees.
• B. Only the purchase price.
• C. A budget should include purchase price, taxes, shipping, insurance, conservation, framing, storage, and a contingency; funds should be allocated to core works with proven provenance, mid-tier pieces for diversification, and reserves for conservation and unforeseen fees.
• D. Budgets are optional for acquisitions.

Answer: (A)

A comprehensive acquisition budget includes all costs related to acquiring art and a clear plan for how funds are distributed across different levels of works. The best choice shows this by listing the full range of costs—purchase price, taxes, shipping, insurance, conservation, framing, storage, and a contingency for unforeseen fees—and by outlining a tiered allocation: funds set aside for core works with proven provenance, additional money for mid-tier pieces to diversify the collection, and reserves to cover conservation and other unexpected expenses. This combination ensures you can complete purchases, protect provenance, spread risk across a range of works, and stay prepared for surprises.

Narrowing the budget to only the purchase price misses essential costs that can accumulate quickly and risk stability. Saying budgets are optional ignores the discipline needed to manage acquisitions effectively. The balanced, multi-component structure in the chosen option provides a practical, realistic framework for building a thoughtful collection.