Which of the Following Is FALSE Regarding an Expense Stop

question 17

Multiple Choice

Which of the following is FALSE regarding an expense stop?

• A)All operating expenses are covered by the stop
• B)The passthrough is based on the tenant's percentage of total leasable area
• C)Expenses to be included must be agreed upon and included in the lease
• D)The stop is often based on the actual amount of operating expenses at the time the lease is signed

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Definitions:

Special Order

An order for a product or service that is outside the company's normal scope of work, often requiring a unique set of costs and pricing.

Relevant Cost

Costs that are directly related to a specific business decision, affecting the future cash flows.

Relevant Benefits

The advantageous outcomes or gains that are directly attributable to a specific action or investment.

Relevant Costs

Costs that are directly affected by a specific business decision and should be considered when making that decision.