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Reconciliation to Indicated Value by the Cost Approach

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

The purpose of the cost approach is to determine _____.

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1. What does reconciliation to indicated value mean?

2. Joe has been asked to determine the replacement cost of a 2,800 square foot 21-year-old brick home on an 11,000 square foot lot. Joe estimated a replacement cost of the home to be $48 per square foot and the lot value of $2 per square foot. The average lifespan of a brick home is 60 years. Using the cost approach, what is the value of the home?

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About This Quiz & Worksheet

The questions you'll be asked will test you on calculations, evaluation methods, and the purpose of the cost approach. Review your knowledge now and discover just what you remember.

Quiz & Worksheet Goals

To pass the test you'll need good knowledge of:

  • How to determine the best valuation method for a given example
  • The meaning of reconciliation to indicated value
  • Purpose of the cost approach
  • Calculating the value of a property using the cost approach

Skills Practiced

  • Information recall - access the knowledge you've gained regarding the best valuation method for a given situation
  • Problem solving - use acquired knowledge to solve cost approach calculations
  • Interpreting information - verify that you can read information regarding the purpose of the cost approach and interpret it correctly

Additional Learning

Reconciliation to Indicated Value by the Cost Approach is the lesson that you can read alongside this quiz. The lesson allows you to learn more about the cost approach and these topics:

  • What value by the cost approach calculates
  • An example calculation using the cost approach
  • The formula for value by the cost approach
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