Book cost refers to the acquisition cost of property as recorded on accounting statements. It typically includes the purchase price, installation costs, and indirect costs such as interest during construction.
Financial feasibility assesses whether a proposed land use or change in land use can economically justify itself. This evaluation is a crucial aspect of determining the highest and best use of the land but does not alone determine the optimal land use.
Indirect costs, also known as soft costs, refer to expenses that are not directly associated with the physical building structure but are incurred during the construction period.
