Which of the following is NOT one of the four methods for calculating improvement values in the cost approach?

In the cost approach to valuation, various methods are utilized to calculate improvement values, which are essential for appraising property. The methods mentioned encompass different techniques for estimating the cost to construct improvements.

The correct answer identifies "Cost Replacement" as not being one of the four standard methods for calculating improvement values. The term generally refers to the process of assessing the cost to replace a structure with one of similar utility, which is an important concept but is not categorized as a distinct calculation method within the cost approach itself.

On the other hand, the Quantity Survey method involves a comprehensive assessment of the actual quantities of materials and labor required for construction, providing very detailed and accurate estimates. The Square foot/cubic foot method utilizes measured units to calculate improvement value based on the dimensions of the structure, serving as a simplified way to estimate costs. Factored Historical Cost relies on past construction data and adjusts it for inflation or other economic factors to estimate current values.

These recognized methods provide appraisers with a structured way to derive improvement values based on varying data types and calculation approaches, whereas "Cost Replacement" refers more broadly to an idea rather than a specific calculation technique.