Cost estimation, Cost Accounting

Cost Estimation 

Cost estimation may be defined with 'a study that attempts to predict among costs and the activity level or cost driver that causes those costs. In practically, managers frequently encounter that cost drivers like what is a cost driver? Hence like machine hours, number of transaction,  labour hours, work cells and units of output.

The cost estimating function is "y = a + bx"

Whereas:

- Y  signifies net cost

- A signifies cost fixed component of the net cost

- bx signifies the variable costs component of the total cost

- b signifies the unit variable cost it is the gradient of the equation

- x signifies output level

This is the common straight line equation that you have been encountering in elementary mathematics.

Posted Date: 2/5/2013 3:14:26 AM | Location : United States







Related Discussions:- Cost estimation, Assignment Help, Ask Question on Cost estimation, Get Answer, Expert's Help, Cost estimation Discussions

Write discussion on Cost estimation
Your posts are moderated
Related Questions
The follow data relates to year 20XX for Plano Manufacturing Company: Units produced - 2,000 Units sold - 1,800 Selling price - $200 / per unit Direct material costs - $80,000 Dire

Definition of Variance Analysis Variance analysis can merely be defined like the process of analyzing the difference between the actual cost and the standard cost this variati

Last in first out or LIFO LIFO is based upon the assumption such the stock purchased last is issued first. Stock valuation should here be based upon the prices ruling on acqui

Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Deoro p

The follow data relates ot year 20XX for Plano Manufacturing Company: Units produced - 2,000 Units sold - 1,800 Selling price - $200 / per unit Direct material costs - $80,000 Dire

Inventory, Supplies and Prepaid Expenses You can well understand the requirements for carrying inventory. So as to  carry  on operations unhindered we require to have sufficien

FDP Company produces a variety of home security. Gary Price, the company’s president, is concerned with the fourth quarter market demand for the company’s products. Unless someth


On a New product development process of making a new S3 STORAGE SIM card phone storage device for end users, forecast the following With full working and tabulations; a) With fu

Time Analysis - Cost Accumulation This is generally achieved via having the employee complete a daily or weekly timesheet or via contain job cards or piecework tickets. As whe