[Answer] The basic principle underlying the cost approach is the principle of ___________.

Answer: Direct
The basic principle underlying the cost approach is the principle of ___________.
The cost approach The cost approach was once called the summation approach. The theory is that the value of a property can be estimated by summing the land value and the depreciated value of any improvements. The value of the improvements is often referred to by the abbreviation RCNLD (for “reproduction/replacement cost new less depreciation”).
Taxation in accord with the benefit principle would leave distribution of real incomes unchanged; Ability-to-pay approach . The ability-to-pay approach treats government revenue and expenditures separately. Taxes are based on taxpayers’ ability to pay; there is no quid pro quo. Taxes paid are seen as a sacrifice by taxpayers which raises the …
Activity-based costing – Wikipedia
Cost accounting – Wikipedia
Neoclassical economics – Wikipedia
Building block model – Wikipedia
In principle the building block model can be designed so as to yield either very low-powered incentives to minimise expenditure (which is sometimes known as cost -of-service or rate-of-return regulation) or very high-powered incentives. The building block model can be implemented in such a way as to yield very high-powered incentives to reduce expenditure by (a) setting the operating and capital …
Tue Sep 18 2001 14:30:00 GMT-0400 (Eastern Daylight Time) · Neoclassical economics is an approach to economics in which the production consumption and valuation (pricing) of goods and services are driven by the supply and demand model. According to this line of thought the value of a good or service is determined through a hypothetical maximization of utility by income-constrained individuals and of profits by firms facing production costs …
Activity-based costing is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. Therefore this model assigns more ind…

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