Which of the Following Expenses Would NOT Be Included in an Operating

question 20

Multiple Choice

Which of the following expenses would NOT be included in an operating statement used to calculate net operating income in the income approach to value?

• A)Reserves for replacement
• B)Maintenance
• C)Real estate taxes
• D)Capital additions

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Definitions:

Staffing Process

The series of steps an organization follows to attract, select, train, and retain employees.

Abilities Fit

The degree to which an individual’s capabilities, strengths, and skills align with their job requirements or organizational roles.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act based on the expected outcome and the value they place on that outcome.

Victor Vroom

A renowned management theorist known for his work on expectancy theory which explains how individuals choose behaviors based on expected outcomes.