1 - Intro To the Cost Approach

Question 1

___________ is the process in which older structures or historic buildings are modernized, remodeled or restored

Answer 1

Renovation

1-9

Question 2

To __________ means to furnish with new or modified parts or equipment not available or considered necessary at the time of manufacture

Answer 2

Retrofit

1-9

Question 3

The ___________ cost is an exact replica whereas the __________ cost is just replacing the utility

Answer 3

Reproduction
Replacement

1-13
1-15

Question 4

The 3 major categories of depreciation are:
___________ deterioration
___________ obsolescence
___________ obsolescence

Answer 4

Physical
Functional
External

1-13

Question 5

___________ value is the price increment that the market will pay because a property has a certain amenity

Answer 5

Contributory

1-13

Question 6

T/F in Reproduction Cost, functional obsolescence will be cured

Answer 6

False

1-15

Question 7

_______ costs are the expenditures for labor and materials used in the construction of the building improvements

Answer 7

Direct

1-16

Question 8

_________ costs are expenditures or allowances for items other than labor and materials that are necessary for construction, but are not typically part of the construction contract

Answer 8

Indirect or “soft”

1-17

Question 9

_______________ incentive is the amount an entrepreneur expects to receive for their contribution to a project

Answer 9

Entrepreneurial

1-18

Question 10

Entrepreneurial _____ is a market-derived figure that represents the amount an entrepreneur receives for their contribution to a project and risk

Answer 10

Profit

1-19

Question 11

_____ ________ area is the total area of finished, above grade residential space

Answer 11

Gross Living

1-21