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APMG-International Better-Business-Cases-Practitioner Exam - Topic 3 Question 37 Discussion

Temporary accommodation has been put on the site of the Old Fire Station Headquarters whilst the development ofthe new campus takes place.Should the cost of the temporary accommodation be treated as a capital cost within the Financial Appraisal?
D) Yes, because these are a cost of developing the scheme.
A) No, because the Financial Appraisal should NOT contain capital costs.
B) No, because construction and refurbishment costs should be treated as revenue costs.
C) Yes, because all running costs must be accounted for.

APMG-International Better-Business-Cases-Practitioner Exam - Topic 3 Question 37 Discussion

Actual exam question for APMG-International's Better-Business-Cases-Practitioner exam
Question #: 37
Topic #: 3
[All Better-Business-Cases-Practitioner Questions]

Temporary accommodation has been put on the site of the Old Fire Station Headquarters whilst the development of

the new campus takes place.

Should the cost of the temporary accommodation be treated as a capital cost within the Financial Appraisal?

Show Suggested Answer Hide Answer
Suggested Answer: D

by Bettye at Mar 09, 2026, 02:00 AM

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Idella
1 day ago
But all costs related to the scheme should be included, right?
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Stephaine
7 days ago
I disagree. It's temporary, so it should be a revenue cost.
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Caren
12 days ago
I think it should be treated as a capital cost. It's part of the development.
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Linwood
17 days ago
Revenue costs make more sense here, right?
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Thea
22 days ago
Totally agree, it’s part of the development costs!
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Celestina
2 months ago
Wait, are we really counting temporary costs as capital?
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Kattie
2 months ago
Definitely not a capital cost!
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Joanne
3 months ago
I think it should be treated as a capital cost.
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Iraida
3 months ago
Revenue costs make more sense here, right?
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Shonda
3 months ago
Totally agree, it’s part of the development expenses!
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Lorrine
3 months ago
Wait, are we really counting temporary costs as capital?
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Domitila
3 months ago
Definitely not a capital cost!
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Franklyn
3 months ago
I think it should be treated as a capital cost.
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Carmela
4 months ago
I believe the right answer is D because those costs are necessary for the development, but I could see how others might argue against it.
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Darrin
4 months ago
I’m leaning towards option B, but I’m a bit confused about whether temporary accommodation fits into revenue costs or not.
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Lemuel
4 months ago
I think we practiced a similar question where we had to decide on costs related to a project. I feel like temporary accommodation might be a capital cost since it’s part of the overall development.
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Annabelle
4 months ago
I remember discussing how temporary costs might be treated differently, but I'm not sure if they count as capital or revenue.
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