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What is the major drawback in the high low method of cost estimation?
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What is material cost variance?
The material cost variance denoting the difference between the standard cost of materials and actual cost of matrials. The material cost variance is between the standard material cost for actual production in units and actual cost. The total cost is usually determined by two differenct factors of influence viz quantity of materials utilized/ required and price of the materials. The fluctuations in the material cost are only due to the fluctuations in the utility of materials due to many factors. Material cost variance can be computed into two different ways: DIRECT METHOD AND INDIRECT METHOD material cost variance= Standard cost of materials for actual output- actual cost of raw materials. MCV=(S Q AO X SP)-(AQ X AP) Indirect Method: material cost variance= Material price variance (MPV)+Material usage Variance
What are the reasons for choosing random sampling method for ones research work and what is random sampling method anyway?
because it is the simplest sampling technique which requires less time and cost.
How can you calculate variable manufacturing cost when total variable cost is not given?
The high-low method can be used to compute the variable cost of producing a good if the total variable cost is unknown.The high-low method requires knowledge of the total costs of producing goods, in two different time periods. These totals include fixed costs, so the "variable cost" is still unknown.For example:In month one, 7000 units were produced at a cost of $5000.In month two, 8000 units were produced at a cost of $5500.Here is the high-low method: Divide the difference in cost by the difference in production to get the variable cost per unit.(5500 - 5000) / (8000 - 7000) = $0.50 per unit.The fixed cost can now be computed. $5000 - $0.50 x 7000 = $1500.Alternatively: $5500 - $0.50 x 8000 = $1500.The high-low method has been used in the example to demonstrate that a production plant has a monthly fixed cost of $1500 and has a variable cost of $0.50 for each unit produced.Now, given any month's total production cost, the variable cost can be computed by deducting $1500 from the cost.The method is called "high-low" because the two production periods used for the computation would, in practice, be the period with the highest level of production and the period with the lowest level of production.
How do you use estimated in a sentence?
Estimation is a range of the subject spoken about. There is estimated to be over 90 different species of birds in California.
How do you calculate cost efficiency?
say energy costs 5 cents and the efficiency is 0.1kwh cost= 0.1kwh x 0.05 cost= o.oo5cents
Can one cost estimation method can be used in combination with another method?
Yes. True
One cost estimation method can be used in combination with another method.?
Yes. True
Can one cost estimation method be used in combination with another method?
Yes. True
Software Estimation Method - Comparison?
estimation is all about Size and scope Effort Time Schedule and Cost. for a s/w development process. Satyajit Kumar Sethy(Wipro Technology)
Difference between pre-feasibility and feasibility?
The most difference is on cost estimation. In PreFS, cost estimation is based on assumptions while cost estimation in FS is normally based on vendors' offers/proposals, at least for expensive price equipment/materials.
What is a estimation?
an estimation is an educated guess as to the cost of a certain procedure or product.
What is one drawback of drilling geothermal wells?
The cost is too expensive.
Why cost estimation is important for project management?
Cost estimation is important because each project has the risk of added costs that weren't consider up front throwing the project into a state where you may not have the budget required to continue working on the project. The cost estimation should include the initial assessment plus % available for added costs.
Full form of cocomo?
COCOMO constructive cost estimation model
What are disadvantages to personal selling?
A drawback of personal selling, however, is its high cost.
What is the difference between estimation and costing?
1,estimation is finding the cost before it has been actually manufactured. and costing is finding cost after manufacturing the product including the defect product cost. 2,estimation need high technical skills and knowledge hence its done by engineering department but costing need high accounting skills hence its usually done by Accountants or account departments 3,estimation foresee the probable cost and hence it can be used to decide whether one need to produce a particular product or not. or if its profitable or not costing helps to understand to what extent the estimation holds good also when and where it fails
How much noise is generated by a standard gas generator?
A standard gas generator is generally much quieter than other types of generators. However, a major drawback is the price and cost of installation of a unit.
