The primary objective of the cost approach is to measure __________, not cost.

The primary objective of the cost approach is to measure value, which focuses on determining the value of a property based on the cost of constructing a similar one, adjusted for depreciation. This approach considers the cost to replace or reproduce the property and then factors in any depreciation that may have occurred due to age, wear and tear, or obsolescence. By measuring value rather than merely cost, appraisers aim to reflect what a buyer would be willing to pay for the property in its current state, taking into account both the expense involved in creating it and its condition.

In contrast, the other options do not align with the fundamental purpose of the cost approach. Price refers to the actual selling figure of a property, which can be influenced by market conditions and may not reflect its intrinsic value. Demand refers to the consumer’s desire for a particular property influenced by various market factors, and profit pertains to the financial gain a seller aims for after computing costs and revenues. While these concepts are relevant in the real estate market, they do not encapsulate the primary goal of the cost approach, emphasizing the importance of accurately estimating the value of the property based on its cost structure.