Reproduction cost is defined as

• A. The cost at current prices to produce an exact duplicate
• B. The cost to replace a building with one of equivalent utility
• C. The market value of the land
• D. The annual operating cost of the property

Answer: (A)

Reproduction cost is the amount at current prices required to construct an exact duplicate of the asset, using the same design and materials. This means building a perfect copy of the property, not just something with the same function. It’s a concept used in the cost approach to value to estimate what it would cost to recreate the property exactly as it exists today. It differs from replacement cost, which aims for a building of equal utility using modern materials and methods, not an exact replica. It also isn’t the market value of the land or the ongoing operating costs of the property.