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CIPS L4M5 Exam - Topic 9 Question 92 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 92
Topic #: 9
[All L4M5 Questions]

A building firm has been awarded a contract to build a new office block, and the

building firm needs to separate its direct and indirect costs.

Which one of the following is a direct cost to the building of the new office block?

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Suggested Answer: A

by Keneth at Jan 05, 2026, 05:16 AM

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Samira
1 day ago
D) Cost of office space seems like it could be direct too!
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Claribel
6 days ago
B) Cost of legal fees should be indirect, right?
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Isadora
12 days ago
Wait, are legal fees really indirect? Seems odd.
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Jestine
17 days ago
Totally agree, materials are essential for construction!
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Mireya
22 days ago
A) Cost of materials is definitely a direct cost.
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Audra
27 days ago
Haha, the cost of office space? That's a good one! Clearly, that's an indirect cost.
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Lisha
2 months ago
Hmm, I'm not sure about that. Wouldn't the cost of legal fees or insurance also be considered direct costs?
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Marica
2 months ago
I agree, the cost of materials is a direct cost that should be included.
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Adelaide
2 months ago
A) Cost of materials is definitely a direct cost for the building project.
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Stevie
2 months ago
Definitely leaning towards A) Cost of materials, but I wonder if they could argue about the office space being direct as well.
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Linette
2 months ago
I feel like insurance might be indirect too, but I can't recall exactly how they categorize those costs.
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Onita
2 months ago
I'm not entirely sure, but I remember a similar question where legal fees were considered indirect costs.
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Graham
3 months ago
I think the direct cost would be the cost of materials since they are directly used in the construction.
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Myrtie
3 months ago
The cost of materials is definitely the direct cost here. The other options like legal fees and insurance seem more like overhead or indirect costs to me.
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Kathryn
3 months ago
I'm not totally sure about this one. The cost of office space seems like it could be a direct cost, but I'm not confident. Guess I'll have to think it through carefully.
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Armando
3 months ago
Okay, I've got this. The direct cost has to be something directly related to the construction, so it's gotta be the cost of materials.
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Gerald
3 months ago
I'm a bit confused on the difference between direct and indirect costs. Is the cost of legal fees or insurance considered indirect?
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Cordelia
3 months ago
Hmm, this seems pretty straightforward. I think the direct cost would be the cost of materials.
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