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APMG-International Exam Better-Business-Cases-Practitioner Topic 6 Question 21 Discussion

Actual exam question for APMG-International's Better-Business-Cases-Practitioner exam
Question #: 21
Topic #: 6
[All Better-Business-Cases-Practitioner Questions]

Temporary accommodation has been put on the site of the Old Fire Station Headquarters whilst the development of

the new campus takes place.

Should the cost of the temporary accommodation be treated as a capital cost within the Financial Appraisal?

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Suggested Answer: A

by Julieta at Jan 09, 2025, 07:26 PM

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Eileen
30 days ago
Hey, as long as the temporary digs have a pool and a fully stocked bar, I don't care how they classify the costs!
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Celia
1 months ago
The real question is, will the new campus have a slide instead of stairs? Now that's the kind of capital investment I'd approve of!
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Dong
3 days ago
I think the cost of temporary accommodation should be treated as a capital cost in the Financial Appraisal.
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Keshia
16 days ago
I agree, a slide would be a fun addition to the new campus!
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Breana
1 months ago
Hmm, I'm leaning towards D. It's like renting a temporary office space while your new headquarters is under construction. Gotta factor that in, right?
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Tamera
1 months ago
B seems logical, but I'm not convinced. Wouldn't the temporary accommodation be considered a capital investment rather than a revenue cost?
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Garry
14 days ago
B) No, because construction and refurbishment costs should be treated as revenue costs.
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Marla
16 days ago
A) No, because the Financial Appraisal should NOT contain capital costs.
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Gearldine
1 months ago
I disagree with C. The Financial Appraisal is focused on capital costs, not revenue costs. So the temporary accommodation cost should not be considered as a running cost.
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Wilda
10 days ago
I agree with B. The temporary accommodation cost should be considered a revenue cost.
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Tamekia
14 days ago
B) No, because construction and refurbishment costs should be treated as revenue costs.
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Lazaro
1 months ago
A) No, because the Financial Appraisal should NOT contain capital costs.
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Tricia
2 months ago
I think the answer is D. The cost of the temporary accommodation is a necessary expense to facilitate the development of the new campus, so it should be treated as a capital cost in the Financial Appraisal.
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Pete
13 days ago
Yes, it should be considered as part of the overall cost of developing the scheme.
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Taryn
18 days ago
I think it makes sense to treat it as a capital cost in the Financial Appraisal.
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Janessa
1 months ago
Yes, but it's necessary for the development of the new campus.
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Clement
1 months ago
I agree, the temporary accommodation cost is directly related to the development of the new campus.
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Bronwyn
1 months ago
But wouldn't it affect the overall financial appraisal?
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Felice
1 months ago
I agree, it makes sense to treat it as a capital cost.
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Alberto
2 months ago
I think the answer is D.
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Edward
2 months ago
I agree with Tamekia, it makes sense to include it as a cost of developing the scheme.
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Cheryl
2 months ago
I disagree, I believe it should be treated as a revenue cost.
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Tamekia
3 months ago
I think the cost of temporary accommodation should be treated as a capital cost.
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