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

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 87
Topic #: 1

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

AProperty maintenance costs

BCouncil tax payable on vacant premises

CRent of office premises

DSolicitor's fees for collection of unpaid rent

Show Suggested Answer

Suggested Answer: C

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

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Shonda

1 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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Wai

1 days ago

C: Rent of office premises

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Deandrea

7 days ago

B: Council tax payable on vacant premises

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Gail

23 days ago

A: Property maintenance costs

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Nan

1 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

2 months ago

But wouldn't property maintenance costs also be considered an indirect cost?

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Stevie

2 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

23 days ago

B: Yeah, I agree. It makes sense that it's not directly related to the individual properties.

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Jolene

29 days ago

A: I think C) Rent of office premises is an indirect cost.

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Glory

2 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

2 months ago

I disagree, I believe rent of office premises is the indirect cost.

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Jovita

2 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

2 months ago

I think the indirect cost would be council tax payable on vacant premises.

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