Integration of FF&E 10% (Budgeting/Cost Estimating)

Question 1

Product Costs

Answer 1

Costs incurred to create a product/service for sale to customer

Direct Material, DIrect labor, Manufacturing overhead

Question 2

Install Costs

Answer 2

Costs incurred and paid for work performed to install a product

Question 3

Life Cycle Costs

LCC

Answer 3

Total cost of a building, component or system

Intial costs, cost of financing, operation, maintenance or disposal

Question 4

Overage

Answer 4

Total material needed to allow for waste, damaged or unusable materials

Mark up percentage

Question 5

Attic Stock

Answer 5

Extra material or FF&E that is contractually required to be purchased for a job

Identical product/materials can be used for future repairs/replacement

Question 6

Return on Investment

ROI

Answer 6

A way of considering profits in relation to the capital invested

Measring per period rates of return

Question 7

Contractor’s Overhead and Profit

Answer 7

Cost of doing business and making a profit off the work

Profit range from 5%-15%