Which of the Following Steps Normally Would Be Used in the Cost

question 14

Multiple Choice

Which of the following steps normally would be used in the cost approach to value?

• A)Estimate net operating income of the property
• B)Multiply accrued depreciation by the assessed cost
• C)Add actual construction costs to the land value
• D)Subtract accrued depreciation from the replacement cost

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Definitions:

Expectancy Theory

A psychological theory about motivation predicting that an individual's motivational force is a result of expectancy, instrumentality, and valence.

High Instrumentality

The belief or expectation that high performance will lead to desirable outcomes.

Procedural Justice

The fairness in the processes that resolve disputes and allocate resources, emphasizing transparency, and consistency in the procedures.

Job Evaluation

A systematic process of determining the relative worth of jobs to establish which jobs should be paid more than others within an organization.