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 days 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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Nan

2 days 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 days ago

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

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Stevie

11 days 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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Glory

12 days 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

13 days ago

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

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Jovita

14 days 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

21 days ago

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

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