cost estimating 10 11

Question 1

cost

Answer 1

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

Question 2

costs that expire are

Answer 2

expenses

Question 3

direct costs

Answer 3

every cost can be luiked to a product or service

Question 4

indirect cost

Answer 4

not easily tracked, also called overhead

Question 5

more accurate costs means

Answer 5

more work, so is it worth it

Question 6

example indirect materials for house building

Answer 6

hammers tools etc

receptionists-indirect labour. -management

Question 7

overheads seperated into

Answer 7

manufacturing ovehead, administrative expenses, selling expenses

Question 8

fixed, variable, mixed costs

Answer 8

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

Question 9

how to find hourly cost

Answer 9

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

Question 10

three types of accounting

Answer 10

financial, management, cost

Question 11

financial accounting

Answer 11

produce financial staements that convey info to outsiders

Question 12

managment accounting

Answer 12

-info for operation

Question 13

cost accounting

Answer 13

-expenses are allocated to products.

Question 14

not all expenditures are expenses

Answer 14

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

Question 15

costing methods

Answer 15

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

Question 16

find costing example

Answer 16

.

Question 17

best accuracy for cost estimates?

Answer 17

5%

Question 18

indicies used for conceptual estimate

Answer 18

cost indices
loacation index
give average cost per standard unit

Question 19

different estimate classes

Answer 19

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

Question 20

expected accuracy for these classes

Answer 20

• 25-+50
• 20 +40
• 15-+25
• 10-+15
• 5-+10

Question 21

at 30-40% design finnish

Answer 21

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

Question 22

60% finsiedh design

Answer 22

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

Question 23

90%finnished

Answer 23

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

Question 24

accuracy factors effect qunatity and cost of three

Answer 24

construction materials
labour
equipment

Question 25

h0w much does labour contribute to construciton costs

Answer 25

30-50%

Question 26

total cost of labour and total work hour equations

Answer 26

cost=work hours*wage rate

workhours= quantity of work/productivity rate

Question 27

two eamples each of external and internal factors effectng productivty

Answer 27

internal, management, work conditions

external, market, environmental conditions.

Question 28

what is a contingencie

Answer 28

amount of money added to an estimate to cover unforeseen needs

Question 29

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

Answer 29

direct cost, job site overhead, markup

Question 30

what does markup component consist of?

Answer 30

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