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APMG-International Exam Better-Business-Cases-Practitioner Topic 6 Question 21 Discussion

Actual exam question for APMG-International's Better-Business-Cases-Practitioner exam
Question #: 21
Topic #: 6
[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?

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Suggested Answer: A

by Julieta at Jan 09, 2025, 07:26 PM

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Eileen
13 days ago
Hey, as long as the temporary digs have a pool and a fully stocked bar, I don't care how they classify the costs!
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Celia
17 days ago
The real question is, will the new campus have a slide instead of stairs? Now that's the kind of capital investment I'd approve of!
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Breana
22 days ago
Hmm, I'm leaning towards D. It's like renting a temporary office space while your new headquarters is under construction. Gotta factor that in, right?
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Tamera
23 days ago
B seems logical, but I'm not convinced. Wouldn't the temporary accommodation be considered a capital investment rather than a revenue cost?
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Gearldine
27 days ago
I disagree with C. The Financial Appraisal is focused on capital costs, not revenue costs. So the temporary accommodation cost should not be considered as a running cost.
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Lazaro
18 days ago
A) No, because the Financial Appraisal should NOT contain capital costs.
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Tricia
1 months ago
I think the answer is D. The cost of the temporary accommodation is a necessary expense to facilitate the development of the new campus, so it should be treated as a capital cost in the Financial Appraisal.
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Taryn
1 days ago
I think it makes sense to treat it as a capital cost in the Financial Appraisal.
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Janessa
13 days ago
Yes, but it's necessary for the development of the new campus.
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Clement
16 days ago
I agree, the temporary accommodation cost is directly related to the development of the new campus.
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Bronwyn
20 days ago
But wouldn't it affect the overall financial appraisal?
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Felice
21 days ago
I agree, it makes sense to treat it as a capital cost.
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Alberto
29 days ago
I think the answer is D.
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Edward
2 months ago
I agree with Tamekia, it makes sense to include it as a cost of developing the scheme.
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Cheryl
2 months ago
I disagree, I believe it should be treated as a revenue cost.
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Tamekia
2 months ago
I think the cost of temporary accommodation should be treated as a capital cost.
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