Question

The amount necessary to make an exact duplicate of a structure is called

_______ cost.
a) Replication cost
b) Replacement cost
c) Reconstruction cost
d) Renovation cost

Answer 1

Replacement cost refers to the cost necessary to construct a new, identical structure using current prices for materials, labor, and other relevant expenses.

Step-by-step explanation:

The amount necessary to make an exact duplicate of a structure is called replacement cost. This term is often used in insurance and real estate to describe the cost to replace a building or another structure in the event of damage or loss. It doesn't simply cover the reproduction of the original structure but also includes the current cost of materials, labor, and any other expenses that would be incurred to construct a new, identical structure.