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

A flat letting company analyses its costs by individual property. Which of the following costs would be considered an indirect cost of the property?
C) Rent of office premises
A) Property maintenance costs
B) Council tax payable on vacant premises
D) Solicitor's fees for collection of unpaid rent

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
9 months ago
I thought maintenance costs were direct, but I guess they can be indirect?
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Ayesha
10 months ago
Solicitor's fees are definitely indirect costs too!
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Fabiola
10 months ago
Wait, how is office rent considered indirect? Seems off.
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Kenneth
10 months ago
Totally agree, it's not directly tied to a specific property.
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Melita
10 months ago
Council tax on vacant premises is an indirect cost.
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Loise
10 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
11 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
11 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
11 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
11 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
11 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
11 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
11 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
1 year 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
1 year 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
1 year ago
D: Solicitor's fees for collection of unpaid rent
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Loren
1 year ago
C: Rent of office premises
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Selma
1 year ago
B: Council tax payable on vacant premises
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Amie
1 year ago
A: Property maintenance costs
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Leana
1 year ago
D: Solicitor's fees for collection of unpaid rent
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Wai
1 year ago
C: Rent of office premises
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Deandrea
1 year ago
B: Council tax payable on vacant premises
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Gail
1 year ago
A: Property maintenance costs
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Nan
1 year 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
1 year ago
But wouldn't property maintenance costs also be considered an indirect cost?
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Stevie
1 year 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
1 year ago
B: Yeah, I agree. It makes sense that it's not directly related to the individual properties.
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Jolene
1 year ago
A: I think C) Rent of office premises is an indirect cost.
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Glory
1 year 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
1 year ago
I disagree, I believe rent of office premises is the indirect cost.
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Jovita
1 year 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
1 year ago
I think the indirect cost would be council tax payable on vacant premises.
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