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CIMAPRA17-BA2-1 Exam - Topic 1 Question 87 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 87
Topic #: 1
[All CIMAPRA17-BA2-1 Questions]

A flat letting company analyses its costs by individual property. Which of the following costs would be considered an indirect cost of the property?

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Suggested Answer: C

by Mitsue at Dec 05, 2024, 07:06 AM

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Gabriele
3 months ago
I thought maintenance costs were direct, but I guess they can be indirect?
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Ayesha
3 months ago
Solicitor's fees are definitely indirect costs too!
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Fabiola
3 months ago
Wait, how is office rent considered indirect? Seems off.
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Kenneth
4 months ago
Totally agree, it's not directly tied to a specific property.
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Melita
4 months ago
Council tax on vacant premises is an indirect cost.
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Loise
4 months ago
I feel like property maintenance costs are definitely direct, but I can't quite remember if council tax on vacant properties counts as indirect.
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Ernestine
4 months ago
I practiced a similar question, and I think solicitor's fees might be considered direct costs since they relate to specific actions on a property.
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Raul
4 months ago
I'm a bit unsure, but I remember something about council tax being more of a direct cost related to the property itself.
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Josphine
5 months ago
I think indirect costs are those not directly tied to a specific property, so maybe the rent of office premises?
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Aleshia
5 months ago
I've got a good feeling about this one. The key is identifying costs that aren't directly attributable to a specific property. The office rent and solicitor's fees seem like they would fit that description, so I'll go with those options.
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Germaine
5 months ago
Okay, let's see. Property maintenance costs are directly related to the individual properties, so that's not an indirect cost. Council tax on vacant premises is also directly tied to the properties. The rent of office premises and solicitor's fees seem more like overhead or administrative costs, so I'll go with those as potential indirect costs.
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Lilli
5 months ago
Hmm, I'm a bit unsure about this one. I need to make sure I understand the difference between direct and indirect costs for a property business.
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Zita
5 months ago
This seems like a straightforward question about indirect costs. I'll think through the options carefully and choose the one that best fits the description.
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Shonda
10 months ago
Trick question! The correct answer is E) Hiring a professional juggler to entertain tenants. Gotta keep those occupancy rates high, you know?
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Lacresha
8 months ago
A: Trick question! The correct answer is E) Hiring a professional juggler to entertain tenants. Gotta keep those occupancy rates high, you know?
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Rolland
8 months ago
D: Solicitor's fees for collection of unpaid rent
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Loren
8 months ago
C: Rent of office premises
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Selma
8 months ago
B: Council tax payable on vacant premises
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Amie
9 months ago
A: Property maintenance costs
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Leana
9 months ago
D: Solicitor's fees for collection of unpaid rent
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Wai
9 months ago
C: Rent of office premises
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Deandrea
9 months ago
B: Council tax payable on vacant premises
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Gail
10 months ago
A: Property maintenance costs
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Nan
10 months ago
I'm going with D) Solicitor's fees for collection of unpaid rent. That's a direct cost associated with managing the individual properties, unlike the office rent.
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Harley
10 months ago
But wouldn't property maintenance costs also be considered an indirect cost?
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Stevie
10 months ago
Wait, so the company has an office separate from the properties? That's kind of a fancy flat letting company, don't you think? Anyway, C) seems like the right answer to me.
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Ma
10 months ago
B: Yeah, I agree. It makes sense that it's not directly related to the individual properties.
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Jolene
10 months ago
A: I think C) Rent of office premises is an indirect cost.
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Glory
10 months ago
I agree with A, property maintenance costs are definitely a direct cost of the property. The other options seem more like administrative or overhead expenses.
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Johanna
10 months ago
I disagree, I believe rent of office premises is the indirect cost.
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Jovita
11 months ago
Hmm, I'd say C) Rent of office premises is the indirect cost here. The property maintenance, council tax, and rent collection are all directly related to the individual properties.
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Harley
11 months ago
I think the indirect cost would be council tax payable on vacant premises.
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