Engineering method-cost estimation method, Managerial Accounting

Engineering method

These methods are based on the use of engineering analysis of technological relationship between inputs and outputs e.g. method studies and time and motion studies.

The procedure in such a study is to make an analysis based on direct observation of the underlying physical quantities required for an activity and then to convert the final result into cost estimate.

This method is useful for estimating costs of repetitive processes where input and output relationship is clearly defined e.g. the cost associated with direct substances, direct labor and machine time.

Posted Date: 12/4/2012 7:38:23 AM | Location : United States







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

Write discussion on Engineering method-cost estimation method
Your posts are moderated
Related Questions
RELEVANT COSTS FOR NON-ROUTINE DECISIONS A relevant cost is a cost that is appropriate to a specific management decision. To be relevant, a cost should be: 1) Future cost

MNO Ltd produces and sells for $25 an office machine for which there is a heavy demand which the company is prevented from meeting because of a shortage of skilled labour. The dire

Cascade Water Company (CWC) currently has 30 000 shares of common stock outstanding, trading at a price of R42 per share.

XYZ Industries manufactures electronic testing equipment. XYZ also installs the equipment at customers' sites and ensures that it functions smoothly. Additional information on the

X's Strategy X will like to divide his play between his rows in such a way that his expected winnings or losses when Y plays the first column will be equal to his expected winn

Review the roles of management accounting within a company. 1.What is the most important role of management accounting? 2.How is that different than financial accounting? 3.What is

Linear Programming     This section introduces the general method called the simplex algorithm, which is designed to solve any linear program. The information that can be secured

MOTIVES FOR HOLDING INVENTORIES If production and delivery of goods were instantaneous, there would be no need for inventories. However in reality, the manufacturing and purcha

State Factors determining Working Capital requirement.

Ask queThe standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticip