Landev, an Economic Model for Land Development

Costs,Cost Bases,&Chart of Accts: "COA"

The last several sections (from "Land Acquisition Costs" through "Residual Values" all depend importantly on the chart of accounts and on a common group of input arrays listed below. Any of these costs or revenues may be entered into any of the input arrays listed below, though some arrays have special advantages for certain kinds of costs (or revenues).

Modelling flexibility is increased by specifying costs as a function of modelling parameters like PACE (settlements). COSTREF is a general purpose array designed for this purpose. These modelling parameters are called in the use of COSTREF.

Some line items, (e.g. road construction) cannot easily be specified as a function of any of the modelling parameters. COSTS and GANDA allow any schedule of costs desired to be entered. COSTS is usually used for development costs because of the ease with which engineering and contingency costs can be imposed with COSTREF. GANDA is used for G&A and marketing because of the ease with which line items can be extended with MV[27].

The first column of each specify the chart of accounts code while the succeeding columns correspond to columns of PACE.

The financial chart of accounts used as the default by LANDEVĀ is adapted from "The Accounting System for All Builders" published by the National Association of Homebuilders, Washington, D.C. 1971, 1977. The user can instead use his own chart of accounts if desired.

Overhead Accounts
Basis Codes for Costs

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