Which of the following is not considered a standard depreciation type in the cost approach?

• A. Technological obsolescence
• B. Physical deterioration
• C. Functional obsolescence
• D. External obsolescence.

Answer: (A)

Depreciation in the cost approach falls into three standard types: physical deterioration, functional obsolescence, and external obsolescence. Technological obsolescence isn’t listed as its own standard type; it usually appears as part of functional obsolescence because outdated technology or equipment reduces a property’s usefulness and marketability. The other two options fit directly: physical deterioration is wear and tear on the structure, and external obsolescence comes from conditions outside the property’s boundaries. So technological obsolescence isn’t a separate standard depreciation type in the cost approach.