Which of the following is NOT one of the four concepts of cost?

The correct choice indicates that market value is not one of the four fundamental concepts of cost commonly recognized in appraisal practices. The four primary concepts of cost generally include historical cost, trended historical cost, replacement cost, and reproduction cost.

Historical cost refers to the original cost to acquire an asset, which serves as a baseline for evaluating financial information. Trended historical cost adjusts that original cost for inflation or other changes over time, providing a more current perspective on value. Replacement cost denotes the cost to replace an asset with a new equivalent item under current market conditions, which is essential for determining insurance and risk assessments.

Market value, on the other hand, represents the estimated price that an asset would bring in a competitive and open market and is influenced by varying factors such as supply, demand, and location. It is a valuation methodology rather than a cost concept, thus distinguishing it from the other terms listed. Understanding these definitions helps clarify the essential frameworks of cost considerations in appraisal work.