Karteikarten
Costing
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- 1Cost defininitionThe amount of money sacrificed for goods and services to bring a current or future cash flow to the organization
- 2ExpensesCosts that are expired
- 3Direct costsEasily tracked to product or service.
e.g. materials, labour like builders - 4Indirect costsNot easily tracked to product or service.
e.g. ladders, receptionists - 5OverheadIndirect costs
- 63 Types of overhead-Manufacturing overhead
- Administrative expenses
- Selling expenses - 7Fixed costs, variable costs and mixed costs- Fixed costs do not increase or decrease when output varies
- Variable costs increase or decrease in relation to output
- Mixed costs have a fixed and variable component - 8Actual costingRecords product costs on actual cost of materials, actual cost of labour and actual overhead cost incurred - experienced during the reporting period
- 9Normal costingUses a predetermined annual overhead rate, based on expected overhead costs and production volumes for a whole year
- 10Differences in usability of actual costing and normal costingActual costing - the easiest, however may take longer.
Normal - More stability if variation in production volumes, less variation in reported costs. Good if having to report back to shareholders etc - 11Main costing methodsProcess costing - Average cost per each unit of production - done by department
Job order costing - Differentiates cost per job (or hour) - done by job
Activity based costing - Calculates what percentage of overhead should be assigned to a job - works in complicated environments - 12Cost indicesNormalized average of price relatives for a given class of goods, in a given region during a given time
Different ones e.g. NZTA, reserve bank..different types power, water supply .. - 13Factors increasing acuracyQuantity and cost of:
- Construction materials
- Labour
- Equipment - 14Things affecting material costing accuracy- Quantity: As per drawing, modifications
-Waste
-Pricing - 15Pricing definition and what should be includedAssigns a dollar value to a work item based on given specifications and predetermined quantities required
Include:
- Permanent and temporary materials
- Labour Required
-Eqipment required
- Consumables ie fuel, tools - 16Percentage of labour costs out of total construction costs30 - 50 %
- 17Positive effects of union membershipFor worker:
-Right to strike, wages, job conditions
- Benefits and job security
- The power to act collectively
For employer:
- Available pool of skilled labour
- Fixed wages and uniform conditions prescribed - 18Negative effects of union membershipFor worker:
Payment for initiation fees, dues etc
For Employer:
- Restrictive work rules
- Inhibits innovation-
Workers have no loyalty to contractors - 19External productivity factors- Market conditions
- Environmental conditions - 20Productivity internal factors- Work conditions
- Management conditions - 21Effect of making workers work a lotIncreases hours per day and days per week will cause production efficency to drop. 40 hours or less is ideal
- 22Effect of large businesses on office expensesThe larger the business, generally the smaller the % of office expenses will be
- 23ContingenciesAmount of money added to estimate to cover unforeseen needs of a project, difficulties, or estimation innacurracies
- 24Three main components of the estimated bid price-Direct cost
-Jobsite overhead
-Markup - 25Requirements for profit- Need to have sufficient profit for a return on equity
- Corresponds to industry average
- May need competitive bidding strategies
- As high as possible that the competitive market will bear - 26A cost model accuracyCannot be expected to give an accuracy greater than 5% - even less for engineering costs
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- Beschreibung
- Cost engineerging for scott kearney
- Erstellt von
- Samuel Metcalfe
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- 22
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