IAAO 101 Chapter 3 Exam Solution Manual Fully Solved Latest Update 2025
The cost approach is premised primarily on the principle of ______________, which state an informed
buyer will not pay more to build a property than the cost of a similar property with equal utility. -
Answers substitution
Cost that occur on the construction site are considered _____ costs. - Answers direct
Building A contains 10,000 square feet and is 100' x 100'. Building B contains 10,000 square feet and is
50' x 200'. Will it cost more to build Building A or Building B? - Answers Building B, because as it has ore
linear feet compared to Building A.
Architectural fees, insurance, and title expenses are considered ______ ______ and are sometimes
called soft costs. - Answers indirect costs
___________ _______ is the cost of producing an exact replica of a building or improvement. - Answers
Reproduction Cost
___________ _______ is the cost of producing a building or improvement using modern methods and
materials with the same utility. - Answers Replacement Cost
Building A was constructed 20 years ago at a cost of $400,000. The index 20 years ago was 200. The
current index is 350. Reproduction cost new for Building A would be______________. ** - Answers
$700,000
Cost components such as the floor, roof, or roofing are considered ______________ costs and are
expressed as cost per square foot. - Answers horizontal
The first step in the cost approach
is____________________________________________________________________________________
_________________________________. - Answers to estimate the land (site) value as if vacant and
available for development to its highest and best use.
The easiest, fastest and most widely used method of estimating cost is the
______________________________ method. - Answers comparative unit (square foot)
Which of the following is a desirable feature of a cost manual? - Answers Applicable to most structure
types
Based on actual costs
Suitable for computerization
All of the above
The cost approach is premised primarily on the principle of ______________, which state an informed
buyer will not pay more to build a property than the cost of a similar property with equal utility. -
Answers substitution
Cost that occur on the construction site are considered _____ costs. - Answers direct
Building A contains 10,000 square feet and is 100' x 100'. Building B contains 10,000 square feet and is
50' x 200'. Will it cost more to build Building A or Building B? - Answers Building B, because as it has ore
linear feet compared to Building A.
Architectural fees, insurance, and title expenses are considered ______ ______ and are sometimes
called soft costs. - Answers indirect costs
___________ _______ is the cost of producing an exact replica of a building or improvement. - Answers
Reproduction Cost
___________ _______ is the cost of producing a building or improvement using modern methods and
materials with the same utility. - Answers Replacement Cost
Building A was constructed 20 years ago at a cost of $400,000. The index 20 years ago was 200. The
current index is 350. Reproduction cost new for Building A would be______________. ** - Answers
$700,000
Cost components such as the floor, roof, or roofing are considered ______________ costs and are
expressed as cost per square foot. - Answers horizontal
The first step in the cost approach
is____________________________________________________________________________________
_________________________________. - Answers to estimate the land (site) value as if vacant and
available for development to its highest and best use.
The easiest, fastest and most widely used method of estimating cost is the
______________________________ method. - Answers comparative unit (square foot)
Which of the following is a desirable feature of a cost manual? - Answers Applicable to most structure
types
Based on actual costs
Suitable for computerization
All of the above
