cost estimating 10 11 Flashcards

1
Q

cost

A

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

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2
Q

costs that expire are

A

expenses

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3
Q

direct costs

A

every cost can be luiked to a product or service

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4
Q

indirect cost

A

not easily tracked, also called overhead

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5
Q

more accurate costs means

A

more work, so is it worth it

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6
Q

example indirect materials for house building

A

hammers tools etc

receptionists-indirect labour. -management

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7
Q

overheads seperated into

A

manufacturing ovehead, administrative expenses, selling expenses

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8
Q

fixed, variable, mixed costs

A

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

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9
Q

how to find hourly cost

A

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

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10
Q

three types of accounting

A

financial, management, cost

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11
Q

financial accounting

A

produce financial staements that convey info to outsiders

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12
Q

managment accounting

A

-info for operation

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13
Q

cost accounting

A

-expenses are allocated to products.

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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.
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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

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16
Q

find costing example

17
Q

best accuracy for cost estimates?

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
h0w much does labour contribute to construciton costs
30-50%
26
total cost of labour and total work hour equations
cost=work hours*wage rate | workhours= quantity of work/productivity rate
27
two eamples each of external and internal factors effectng productivty
internal, management, work conditions | external, market, environmental conditions.
28
what is a contingencie
amount of money added to an estimate to cover unforeseen needs
29
three componenets (from figure) that make up estimated bid price
direct cost, job site overhead, markup
30
what does markup component consist of?
main office allocated cost, contingiency and risk, expected profit.