Which listed method itemizes detailed material quantities, labor and related costs?
Correct Answer
D) Quantity survey.
Quantity survey itemizes detailed material quantities, labor and related costs. It is more granular than a whole-building unit rate or installed-assembly estimate. Actual frequency of professional use is not proved here, and no universal detail ranking makes historical indexing an exhaustive construction survey.
Why This Is the Correct Answer
Option D is correct because the quantity survey method identifies and prices all necessary materials and labor for the project. It details the quantity, quality and cost of every input, which is what the stem describes. That makes it more detailed than unit-rate or installed-component methods.
Why the Other Options Are Wrong
Option A: Comparative-unit method.
Option A is wrong because the comparative-unit method applies an overall cost per unit, such as per square foot, to the whole building. It does not itemize material quantities and labor.
Option B: Unit-in-place method.
Option B is wrong because the unit-in-place method prices installed building components, such as walls or roofing, as units. It is more detailed than a comparative-unit rate but does not list every material quantity and labor input.
Option C: Index (trended cost) method.
Option C is wrong because the index (trended cost) method adjusts a historical cost to a current figure with a cost index. It does not itemize materials and labor at all.
Quantity survey counts everything
Quantity survey literally surveys the quantities: every brick, board and labor hour is listed and priced.
How to use: Use this when a question asks which cost method itemizes materials and labor.
Exam Tip
Rank methods by detail: comparative-unit is broadest, unit-in-place breaks into components, and quantity survey lists every input.
Common Mistakes to Avoid
- -Confusing unit-in-place with quantity survey
- -Thinking the index method itemizes current costs
- -Assuming the square foot method lists materials
Concept Deep Dive
Analysis
This question tests the cost estimating methods and their level of detail. The quantity survey method identifies and prices all materials and labor, making it the most itemized. The other methods use whole-building unit rates, installed components or cost indexes.
Background Knowledge
Common cost estimating methods include the comparative-unit (square foot) method, the unit-in-place method, the quantity survey method and the index (trended cost) method. The quantity survey is the most detailed, building the estimate from every material and labor item.
Real-World Application
For a unique custom building with no good cost-service match, an appraiser relies on a contractor's quantity survey listing materials, quantities and labor. This gives a detailed basis for cost new.
More Cost Approach Questions
Why can equivalent-utility replacement cost be useful for an obsolete improvement?
An appraiser estimates the current replacement cost new of the improvements at $890,000, accrued depreciation from all causes at $170,000, and land value at $325,000. All necessary cost components and depreciation are included in those amounts. What is the indicated property value?
Improvement cost new is $595,000. Separately supported improvement depreciation deductions of $48,000, $27,000 are expressly nonoverlapping and not already excluded from cost new. Add supported site value of $155,000, already reflecting any site losses. What total indicated value results?
What best supports a claimed loss from a bathroom-layout deficiency?
Improvement cost new is $1,850,000. Separately supported improvement depreciation deductions of $310,000, $620,000 are expressly nonoverlapping and not already excluded from cost new. No site is included. What depreciated improvement amount results?
Which scenario most strongly supports giving the cost approach substantial weight?
A cost total $650,000 explicitly includes $40,000 of non-realty FF&E outside the appraised real-property interest. Exclude it. Supported realty-only total depreciation is $55,000. Add site $200,000, with no overlap. What real-property cost indication results?
A 2,200-sf dwelling costs $200 per square foot, and a separate 400-sf garage costs $75 per square foot. These costs are complete and do not overlap. Both have an effective age of 15 years and a total life of 50 years, with straight-line depreciation and no salvage value. No site value or other loss is involved. What is the combined depreciated cost of the dwelling and garage?
A new feature in the improvements has a current cost of $45,000 and a market contribution of $18,000. The entire difference is due to superadequacy, with no physical or external loss and no overlap. What is the loss from the superadequacy?
An external influence causes an annual net income loss of $9,600. The capitalization rate for the loss is 8%, and no other economic factors change. What is the indicated loss in value of the whole property, before allocation between site and improvements?
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The subject improvements have hard costs of $300,000 and soft costs of $45,000. These amounts do not overlap and include all required improvement costs. Total depreciation is estimated at 20% of their sum, and the site is valued at $175,000. What value does the cost approach indicate?