The cost approach to finding an appraised value measures which of the following?

The cost approach to appraisal is based on the principle of substitution, which assumes that a buyer will not pay more for a property than it would cost to purchase a similar site and construct a comparable building with equal utility.

The process involves:

Estimating the value of the land as if vacant,

Estimating the current cost to reproduce or replace the improvements,

Subtracting depreciation (physical, functional, or external), and

Adding the land value to the depreciated improvement cost.Thus, the cost approach measures the cost to acquire the land and construct a reproduction or replacement of the improvements—making option A correct.