Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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?

Show Suggested Answer Hide Answer
Suggested Answer: A

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

Limited Time Offer

25%

Off

Get Premium L4M5 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Timothy
26 days ago
Definitely A. Direct costs are what you see on-site, like materials. Makes sense!
upvoted 0 times
...
Lou
1 month ago
Right! Insurance costs also fall under indirect. They protect the project, not build it.
upvoted 0 times
...
Vallie
1 month ago
Agreed, Jacklyn. Legal fees are indirect. They support the project but aren't directly tied to building.
upvoted 0 times
...
Jacklyn
1 month ago
I think A) Cost of materials is the direct cost. It’s essential for construction.
upvoted 0 times
...
Samira
2 months ago
D) Cost of office space seems like it could be direct too!
upvoted 0 times
...
Claribel
2 months ago
B) Cost of legal fees should be indirect, right?
upvoted 0 times
...
Isadora
2 months ago
Wait, are legal fees really indirect? Seems odd.
upvoted 0 times
...
Jestine
2 months ago
Totally agree, materials are essential for construction!
upvoted 0 times
...
Mireya
2 months ago
A) Cost of materials is definitely a direct cost.
upvoted 0 times
...
Audra
2 months ago
Haha, the cost of office space? That's a good one! Clearly, that's an indirect cost.
upvoted 0 times
...
Lisha
3 months ago
Hmm, I'm not sure about that. Wouldn't the cost of legal fees or insurance also be considered direct costs?
upvoted 0 times
...
Marica
3 months ago
I agree, the cost of materials is a direct cost that should be included.
upvoted 0 times
...
Adelaide
3 months ago
A) Cost of materials is definitely a direct cost for the building project.
upvoted 0 times
...
Stevie
4 months ago
Definitely leaning towards A) Cost of materials, but I wonder if they could argue about the office space being direct as well.
upvoted 0 times
...
Linette
4 months ago
I feel like insurance might be indirect too, but I can't recall exactly how they categorize those costs.
upvoted 0 times
...
Onita
4 months ago
I'm not entirely sure, but I remember a similar question where legal fees were considered indirect costs.
upvoted 0 times
...
Graham
4 months ago
I think the direct cost would be the cost of materials since they are directly used in the construction.
upvoted 0 times
...
Myrtie
4 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.
upvoted 0 times
...
Kathryn
4 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.
upvoted 0 times
...
Armando
5 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.
upvoted 0 times
...
Gerald
5 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?
upvoted 0 times
...
Cordelia
5 months ago
Hmm, this seems pretty straightforward. I think the direct cost would be the cost of materials.
upvoted 0 times
Kenia
15 days ago
Yeah, legal fees and insurance are indirect.
upvoted 0 times
...
Daniela
20 days ago
I agree, cost of materials is definitely a direct cost.
upvoted 0 times
...
...

Save Cancel