California Real Estate Practice Exam

Which of the following statements about cost and value is true?

1. They are always the same

2. They may be the same

3. They are never the same

4. Cost is always higher than value

The correct answer is: They may be the same

Cost and value are not always the same. Choice A and C are incorrect because they make absolute statements that do not always hold true. Choice D is incorrect because cost and value do not always have a set relationship in terms of which is higher. They may be the same or cost may be higher than value, depending on the context and perspective. Choice B is the most accurate statement as it acknowledges that cost and value may be equal, but also recognizes that they may not be.