Property Valuation
In the cost approach, 'reproduction cost' differs from 'replacement cost' in that:
AReproduction cost uses current construction methods and materials
BReproduction cost is the cost to build an exact replica; replacement cost uses current standards✓ Correct
CReplacement cost is always lower than reproduction cost
DReproduction cost includes land value; replacement cost does not
Explanation
Reproduction cost is the cost to build an exact replica of the structure using the same materials and methods. Replacement cost is the cost to build a structure of equal utility using current materials and construction standards, which may differ from the original design.
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