Rule Of Five

Business, Legal & Accounting Glossary

Definition: Rule Of Five


Rule Of Five


Full Definition of Rule Of Five


A rule of thumb subdividers use to estimate subdivision costs. In general, 20 of the final total sales price will be allocated to land acquisition, 20 percent of the total sales price to improvement costs like grading, road installation, 20 percent to miscellaneous costs like interest, carrying charges, and unsold lots, and 40 percent of administrative costs, sales commissions, and profits.


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Definition Sources


Definitions for Rule Of Five are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th November, 2021 | 0 Views.