In the cost approach, the most difficult item to measure accurately is:

Question

Quizplus · Accepted Answer

Accrued depreciation is the most difficult item to measure accurately in the cost approach because it involves estimating the value of the property that has been lost due to wear and tear, obsolescence, and other factors over time. This requires a thorough understanding of the property's age, condition, and maintenance history, as well as knowledge of current market trends and conditions. The other items listed (square footage, lot size, and replacement cost) are easier to measure accurately and are based on more objective data.

In the Cost Approach, the Most Difficult Item to Measure