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
difference between cost and costing
difference between conventional costing methodology ang activity costing
Target costing is when you have a goal for the project and its costs. Absorption costing is when you need to fix the excess spending.
actual costing uses actual indirect-cost rates normal costing uses budgeted indirect-cost rates
activity based costing does not promote TQM(total quality management) and continuous improvement but attribute based costing promotes the both.
difference between cost and costing
difference between conventional costing methodology ang activity costing
diferece between ratio and regression
there is have some differeance . 1.
Target costing is when you have a goal for the project and its costs. Absorption costing is when you need to fix the excess spending.
estimation is to think of an answer before measuring the quantity and approximation is to round off.
actual costing uses actual indirect-cost rates normal costing uses budgeted indirect-cost rates
job costing refers to very small work while contract costing refers to large work like building a bridge.
activity based costing does not promote TQM(total quality management) and continuous improvement but attribute based costing promotes the both.
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.
The difference between a measurement and an estimation is that a measurement is an exact data while an estimation is a guess as to what something may measure. For example, you can use a ruler to get the exact measurements of a piece of paper. However, if you don't have a ruler, you can make an educated guess as to what the paper's length and width measurements may be.
Over costing means charging more costs to items than it's actual cost while under costing means charging less cost then actual costs.