Which of the following is NOT considered in the cost approach appraisal method?

In the cost approach appraisal method, the primary focus is on estimating the cost to replace or reproduce a property, then adjusting that amount for depreciation, and finally adding the value of the land. This method is especially useful for valuing properties that do not frequently sell, like special-use buildings or new constructions where replacement costs can be more readily determined.

Operating expenses, on the other hand, are associated with the ongoing costs of running a property such as maintenance, property management, and taxes. These expenses are not directly tied to the valuation of the property itself in the cost approach, which focuses on the value of the property based on its physical construction and land value. Therefore, operating expenses do not factor into the calculation when determining a property's appraised value through the cost approach, making it the correct answer to the question.