# cost estimating 10 11 Flashcards Preview

## Project management 2 > cost estimating 10 11 > Flashcards

Flashcards in cost estimating 10 11 Deck (30)
1
Q

cost

A

amount of money sacrficed for goods to bring a current or future cashflow into the orginisation

2
Q

costs that expire are

A

expenses

3
Q

direct costs

A

every cost can be luiked to a product or service

4
Q

indirect cost

A

not easily tracked, also called overhead

5
Q

more accurate costs means

A

more work, so is it worth it

6
Q

example indirect materials for house building

A

hammers tools etc

receptionists-indirect labour. -management

7
Q

A

8
Q

fixed, variable, mixed costs

A

fixed doesnt change when output increases, variable obvs changes with outp, mixed has variable and fixed components

9
Q

how to find hourly cost

A

take last years over head, take last years acrtivities, find predtermined overhead by dividing .

10
Q

three types of accounting

A

financial, management, cost

11
Q

financial accounting

A

produce financial staements that convey info to outsiders

12
Q

managment accounting

A

-info for operation

13
Q

cost accounting

A

-expenses are allocated to products.

14
Q

not all expenditures are expenses

A
• corrections are made like pre paid expenses( expenditure for another year)
• long lived assers are not in full as expenses for the period . depreciation.
15
Q

costing methods

A

process costing-assigns average costs to each unit of production.
job order costing-differentiates the direct costs per job to see how profitable ach one is
activity based costing-percentage of overhead assigned to a job

16
Q

find costing example

A

.

17
Q

best accuracy for cost estimates?

A

5%

18
Q

indicies used for conceptual estimate

A

cost indices
loacation index
give average cost per standard unit

19
Q

different estimate classes

A

conceptual estimate
engineering estimate(1-3)
contractor detailed estimate

20
Q

expected accuracy for these classes

A
• 25-+50
• 20 +40
• 15-+25
• 10-+15
• 5-+10
21
Q

at 30-40% design finnish

A
• many critical decisions known, like footprinjt, major equipment etc
• first engineering estimate foundation
22
Q

60% finsiedh design

A

foundation for second engineering estimate
-verify systems meet needs
-use more precuise quantitires and quality requirements
review drawings by construction specialists

23
Q

90%finnished

A

complete set of bid documents
last chance review
wil be sent to authorites for r3eview

24
Q

accuracy factors effect qunatity and cost of three

A

construction materials
labour
equipment

25
Q

h0w much does labour contribute to construciton costs

A

30-50%

26
Q

total cost of labour and total work hour equations

A

cost=work hours*wage rate

workhours= quantity of work/productivity rate

27
Q

two eamples each of external and internal factors effectng productivty

A

internal, management, work conditions

external, market, environmental conditions.

28
Q

what is a contingencie

A

amount of money added to an estimate to cover unforeseen needs

29
Q

three componenets (from figure) that make up estimated bid price

A

direct cost, job site overhead, markup

30
Q

what does markup component consist of?

A

main office allocated cost, contingiency and risk, expected profit.