Reposted 8-3-09
Posted 6-18-07

Page 381: Replace the definition of Cost Approach with the following:

Cost approach (to value) is a valuation method particularly useful for valuing items which are unique, one-of-a-kind or custom-made, or for which few comparable sales exist, and which it is acceptable to be replaced with a new property. The cost approach measures worth based on the cost to purchase or make an exact replica or a suitable substitute property (deducting, if necessary, for various types of depreciation existing in the subject property including physical deterioration, and technical, functional, and economic obsolescence.) With the exception of certain types of appreciable property such as an item of appreciable property made by a living artist, the cost approach to valuation is normally applicable only to depreciable items of personal property which are capable of being replaced with a new property.