Using this valuation method, the cost to re-create the business or asset is calculated.
A) Market approach
B) Income approach
C) Cost approach
D) Synergistic approach
E) Pratt's CPS approach

Question

Quizplus · Accepted Answer

The cost approach is specifically designed to determine the cost to re-create the business or asset. This method takes into account the cost of acquiring the necessary land, materials, labor, and other expenses to build or replace the asset. Therefore, it is the most appropriate choice for this purpose.

Using This Valuation Method, the Cost to Re-Create the Business