REE 4103 TEST 2 QUESTIONS WITH VERIFIED ANSWERS GRADED A+
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Course
REE 4103
Institution
REE 4103
REE 4103 TEST 2 QUESTIONS WITH VERIFIED ANSWERS GRADED A+
Direct costs (Hard costs) are - Answer-• The cost of labor, materials, and equipment used in construction
Entrepreneurial incentive is - Answer-• An amount anticipated prior to development
In the cost approach _____ is deducted...
REE 4103 TEST 2 QUESTIONS WITH
VERIFIED ANSWERS GRADED A+
Direct costs (Hard costs) are - Answer-• The cost of labor, materials, and equipment
used in construction
Entrepreneurial incentive is - Answer-• An amount anticipated prior to development
In the cost approach _____ is deducted after estimating the cost to reproduce an
existing structure - Answer-Depreciation
In the cost approach the site is valued as if it were - Answer-• Vacant and available for
development to its highest and best use
• Improved and suited for its intended use or development
• Developed and operating****
In the cost approach, the valuation of land involves the principle of: - Answer-• Highest
and best use
Physical deterioration refers to - Answer-• Loss of value of a building from its
reproduction cost, resulting from wear and tear over time
Replacement cost new refers to the cost of: - Answer-• Constructing a building that
would have similar or equivalent utility
Replacement cost - Answer-• The cost of building an improvement of equal utility, but
using modern materials, techniques, layout, and design.
Reproduction cost is: - Answer-• The cost of creating an exact replica of the
improvements, using the same materials, design, layout, and level of craftsmanship.
The cost approach is not useful for - Answer-• Checking value approaches
The cost approach is most applicable when the property being appraised: - Answer-•
Has relatively new improvements that represents the highest and best use of the land
The cost approach is typically very effective when - Answer-• the property being
appraised has new improvements that represent the highest and best use
The current reproduction cost - Answer-• Includes the estimated cost of all items as of
the effective date of appraisal with materials as they were installed
, The market loss caused by depreciation in an older structure may be offset by all of the
following except - Answer-It may be offset by a temporary scarcity relative to demand or
by an improvement's historical or architectural significance
The total construction cost of a structure requires consideration of which of the
following? - Answer-• Replacement cost new of the improvements plus the market value
of the land.
Which of the following tends to set the upper limit of value? - Answer-• Replacement
cost new of the improvements plus the market value of the land.
Which principle of value best affirms that the maximum value of property generally
cannot exceed the cost of its replacement - Answer-• Substitution
All of the following are cost estimation methods except:
• Unit-in-place
• Unit-breakdown
• Quantity survey
• Comparative unit
• Segregated cost - Answer-Unit break-down
Based on the following cost estimates, what is the reproduction cost of a 2,350-sq.-ft.
house with a 1,100-sq.-ft. basement, a 650-sq.-ft. attached garage, and a 300-sq.-ft.
wood deck?· Above-grade residence cost = $77 per square foot; · Basement area cost
= $18 per square foot; · Garage cost = $18 per square foot; · Wood deck = $11 per
square foot - Answer-• $215,750
Based on the following cost estimates, what is the reproduction cost of a 2,650-sq.-ft.
house with a 1,100-sq.-ft. basement, a 650-sq.-ft. attached garage, and a 300-sq.-ft.
wood deck?· Above-grade residence cost = $77 per square foot; · Basement area cost
= $18 per square foot; · Garage cost = $18 per square foot; · Wood deck = $11 per
square foot - Answer-• $238,850
Cost index trending is - Answer-• Estimating current cost based on the original cost
extended to the effective date
Historical costs of construction for an improvement totaled $100,000 in January 1998.
To update the original cost amounts to a more recent date is an example of - Answer-•
Cost index
Reproduction or replacement cost includes all of the following except - Answer-• Fixed
and variable expenses of operations
The basis of the comparative-unit method of estimating reproduction cost is - Answer-•
Price per square foot
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