Rule of Thumb Costing Flashcards
What is meant by the term rule of thumb costing?
Practice of estimating a price based on previous jobs with similar elements.
Why is rule of thumb costing a popular method for estimates?
Allows you to provide an estimate to a customer quickly and efficiently.
What 2 types of measurements are usually made to begin the process of rule of thumb costing?
Relies on linear measurements in some cases and on area measurements in others.
If other shops are charging approximately the same price, how can you best compete?
May find it necessary to compete on warranty and service, since3 all of you competitors are charging a similar amount.
Term used to describe the part of an estimate where the product deviates from the standard formula allowed in a rule of thumb estimate?
Up-Charge
