Estimating the total cost

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Estimating Total Cost of Ownership

Estimating Total Cost of Ownership

Underestimating these costs can have a detrimental effect on the total cost of ownership value for a given application. Direct costs are integral to owning a new application, and they include researching, designing, purchasing, installation, and customizing costs. The importance of determining TCO cannot be downplayed, because procuring a new application affects all area of productivity within an organization. Therefore, a lower TCO value is not always ideal because other factors like satisfying the needs of the end user, revenue generation, lowering the expenditures of the organization, solving business needs and aligning with the needs of the IT and operations departments are vital factors require considering. Different parties are interested in the TCO value. Among them is executive management who require the information to decide on the solution to purchase. Vendors and their marketing teams compute the total cost of ownership to ascertain the performance metrics of their software solutions. Lastly, procurement managers use total cost of ownership to capture the expenses attached to the application over time.
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Estimating Total Cost of Ownership for United States Air Force Chiller Assets

Estimating Total Cost of Ownership for United States Air Force Chiller Assets

performance data that are often difficult to “dollarize”. These models tend to become rather complex, as qualitative data are transformed to quantitative data. They often require very lengthy explanations of each cost category. The total cost derived from value-based models is not directly traceable to dollars spent in the past, spent currently or estimated to be spent in the future, as are the dollar-based TCO results. However, the way in which the supplier’s performance is scored within categories and points allocated among categories reflects the buying organization’s estimate of the cost of various performance discrepancies. Organizations which choose a value-based approach prefer it because as costs and the organization’s priorities change, the “weighting” of cost factors can be changed accordingly. Value based models require a great deal of fine tuning and effort to develop the proper weightings and point allocations so that they reflect the TCO. Like dollar-based TCO analysis, value-based models are derived from historical data and/or estimates of future costs. Value-based models tend to focus on a small number of major cost issues, generally around three or four. Calculations beyond this point tend to become too complex.
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Cost Estimating Guide

Cost Estimating Guide

In accordance with GAO-09-3SP, Chapter 5, “A life-cycle cost estimate is a best practice because it provides an exhaustive and structured accounting of all resources and associated cost elements required to develop, produce, deploy, and sustain a program. As such, a life-cycle cost estimate should encompass all past (or sunk), present, and future costs for every aspect of the program, regardless of funding source. Life-cycle costing enhances decision making, especially in early planning and concept formulation of acquisition. Design trade-off studies conducted during this period can be evaluated on a total cost basis, as well as on a performance and technical basis. A life-cycle cost estimate can support budgetary decision, key decision points, milestone reviews, and investment decisions. Because they encompass all possible costs, life- cycle cost estimates provide a wealth of information about how much programs are expected to cost over time.”
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Validity of ASABE Standards in Estimating Total Operating Cost of Agricultural Machinery in Sudan

Validity of ASABE Standards in Estimating Total Operating Cost of Agricultural Machinery in Sudan

CHAPTER ONE INTRODUCTION 1.1. Agriculture in Sudan: Sudan is the largest country in Africa with an area of about 2.5 million km² .It is bounded by the Red Sea on the east and on other sides by nine African countries. Its topography is generally a broad plain; .The climatic conditions vary between deserts in the north passing through savannah to wet equatorial forest in the south. Rainfall varies from none or rare in the hot arid north to more than 1500 mm in the wet tropics of mixed forest in the south, with plenty of sun shine. Sudan total population is about 39 million with a growth rate of 2.9 % per year, 25 %of the population being urban. Agriculture, being the main sector in the Sudanese economy, provides food, raw material for local industries and job opportunitities. It contributes 51.1% of gross domestic product and 75% of labour force and 22%of export exchange (Central Bank of Sudan 46 th Annual Report2006).
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Cost Estimating Manual

Cost Estimating Manual

Alternative 2: Detailed Method We now have a Class 3 estimate for the same project, again in 1Q92 dollars. According to our contracting plan, we will do the design in-house and will purchase the equipment, pipe spools, tagged instruments, and electrical switchgear. We plan to have the construction contractor furnish the other bulk materials (concrete, piping, pipe supports, field wiring, etc.) as part of the contract. Figure 312-3 shows the expenditures we expect to incur, by quarter. Using data that differs slightly from Section 301 (source unspecified), we expect cost escalation to the mid-points of expenditure for each category as shown in the figure. Note that the hourly cost of construction labor increases in July of each year. Here the total escalation is estimated to be $257,000.
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ESTIMATING ECONOMETRIC MODEL OF AVERAGE TOTAL MILK  COST: A SUPPORT VECTOR MACHINE REGRESSION APPROACH

ESTIMATING ECONOMETRIC MODEL OF AVERAGE TOTAL MILK COST: A SUPPORT VECTOR MACHINE REGRESSION APPROACH

Conclusions SVM regression provides a new approach to the problem of parameter estimation of linear and especially non-linear econometric models. In this paper a brief ex- position of SVM regression and their flexibility in han- dling economic data is given. Different SVM regression models are used for estimation of the econometric model of average total milk cost in Estonian farms. The results are compared mutually and with results of ordinary linear regression. The discussion may be summarised in the fol- lowing conclusions:

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Estimating Construction Cost by Purefoy

Estimating Construction Cost by Purefoy

_ Private owners are not required to award the contract to the lowest bidder but may select to the contractor deemed most desirable for the project. -- Negotiated contracts : Award of the contract is made to the contractor the owner feels can provide the best total performance , which may or may not be lowest initial cost.

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Estimating the Cost of Marketing Automation

Estimating the Cost of Marketing Automation

• supporting programs increase the close rate for leads from all acquisition programs. To calculate their value, first estimate the incremental revenue they create and then subtract the direct cost of the program and that same percentage for non-program costs. (Ideally, this percentage would be adjusted for each program to remove that program’s costs from the total, so it isn’t double counted. But it’s probably not worth the effort in most cases; these figures are not accurate enough for that particular error to matter.) Divide the resulting profit contribution by the number of leads touched by each program, and the result is a profit contribution per lead.
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Estimating the True Cost of Retirement

Estimating the True Cost of Retirement

Section 7: Conclusions In this paper we use various government survey data and perform an analysis to more accurately estimate the cost of retirement. We note that while a replacement rate between 70% and 80% is likely a reasonable starting place for most households, the actual replacement goal can vary considerably based on the expected differences between pre- and post-retirement expenses. We also find that retiree expenditures do not, on average, increase each year by inflation and that the actual “spending cure” of a retiree household also varies by total consumption, whereby households with lower levels of consumption tend to have real increases in spending that are greater than households with higher levels of consumption.
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PROJECT COST ESTIMATING GUIDELINES

PROJECT COST ESTIMATING GUIDELINES

___________________________________________________________________ Appendix 1 – Cost Elements for Transportation Projects Page 11 Determining the amount of contingency should always involve some form of risk analysis where key risks and associated cost drivers (e.g. commodity prices, labour productivity, geotechnical knowledge, market conditions [supply and demand]) are identified and probabilities of occurrence are assessed. Key members of the project team should provide input to assess risk properly. A contingency amount can be derived by quantifying each identified risk based on the probability of that activity being completed as planned, and the impact if it’s not. The amounts for each identified risk are summed and an assessment of the resulting aggregate amount should be made in order to establish the total contingency.
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Cost Estimating & Cost Management

Cost Estimating & Cost Management

23 DOCUMENTING/APPROVING SCOPE OF WORK AND COST ESTIMATES • Develop a statewide Estimates Tracking System that extracts data from existing Department systems. This system will be used to document scope of work and cost estimate changes from project inception to contract award.

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Detailed Cost Estimating

Detailed Cost Estimating

Direct labor wages can vary from location to location by 10 to 15 percent, and sometimes as much as 50 percent. Once wages are considered, labor productivity drives the cost of installation. High productivity results in lower installation cost, while low productivity increases installation cost. However, it is not uncommon for productivity to be very low when direct labor rates are very low, resulting in a relatively high in-place cost per unit despite low wages. Taxes and insurance affect labor costs. Certain trades, such as demoli- tion, carry very high insurance premiums because of the risks associated with the work and the relative safety record of the contractor. Conditions of the work, particularly with renovation, affect productivity relative to access and egress, lay-down/staging areas, and dust, dirt, and general job cleanup requirements, as well as the space available to conduct business. Scheduling and work hour requirements may restrict access to the work or may force multiple work activities to be scheduled at the same place or at the same time. How efficiently shared equipment and services are managed will also affect productivity.
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BIM and Cost Estimating

BIM and Cost Estimating

cost, and reduce the potential for human error. In fact, a common complaint from estimating firms is how much they hate paying estimators to simply count or quantify when they bring so much more expertise and experience to the table. By automating the tedious task of quantifying, BIM allows estimators to use that time instead to focus on higher value project-specific factors - identifying construction assemblies, generating pricing, factoring risks, and so forth - that are essential for high- quality estimates. For example, consider a commercial project slated for construction in northern Minnesota in the winter. The estimator will realize that winter heating and dewatering will be needed for a portion of the concrete substructure. This is the sort of specialized knowledge only professional estimators can factor in to the cost estimate accurately. This construction wisdom, not "counting," is the real value professional estimators bring to the cost estimating process.
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Cost Estimating Manual

Cost Estimating Manual

4.1.2 Direct Job Costs Each activity within the standard work breakdown structure (WBS) is sub-divided into sub-activities or tasks according to the processes needed to complete the work. These work activities are usually detailed in the project specification (and as per detailed scope definition). For example, concrete in a bridge deck is typically subdivided into formwork, reinforcement steel, concrete supply and placement, finishing and curing. To determine the direct cost of the activity, resources such as plant, labour and materials are then allocated to the scheduled quantity of work according to their capacity to meet the requirements of the project, resource availability, production rates and unit costs The sum of the activity direct costs gives the Direct Job Costs (DJC) of the project.
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Cost Estimating Simplified

Cost Estimating Simplified

5 mark-ups cover the costs of field overhead, home office overhead, and profit and range from 15% to 25% of the cost for a particular item of work. Pricing reflects probable construction costs obtainable in the project locality on the date of cost estimate of probable costs. This estimate is a determination of fair market value for the construction of the project. It is not a prediction of low bid. Pricing assumes competitive bidding for every portion of the construction work for all subcontractors and general contractors, with a minimum of four bids for all items of subcontracted work and six to seven general contractor bids. Experience indicates that a fewer number of bidders may result in higher bids, conversely an increased number of bidders may result in more competitive bids.
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Cost Estimating Concepts

Cost Estimating Concepts

Overhead are the costs incurred by an employer over and above direct salaries and benefits paid to employees working on a project (e.g., insurance, office rent, office equipment cost[r]

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Cost Estimating Procedures

Cost Estimating Procedures

• Third-party independent review of the cost estimate by an organization external to D Cost S, as required by decision- makers. • Potentially more-to-come from TBS Costing Centre of Ex[r]

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Estimating the cost of care

Estimating the cost of care

Specifically, we provide (1) estimates of the incremental direct medical costs of treating both mTBI and PTSD rather than either condition alone; (2) estimates of costs associ[r]

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COST ESTIMATING METHODOLOGY

COST ESTIMATING METHODOLOGY

• "Grass roots" or "bottom up" estimating is a method which develops costs by defining and calculating costs from the lowest element of work or task and identifying the hours it will take to accomplish those tasks. • The estimator starts at the lowest level of engineering work such as

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Fixed Cost, Variable Cost, and Total Cost

Fixed Cost, Variable Cost, and Total Cost

The figure above is the most important one for you to remember, because ATC, AVC, and MC are useful in understanding how a firm maximizes profit. CONCLUSION In the business we have to observe Time period for the Short run and long run and Tim cost for the fixed input and variable input observed and output is also not changed for the production and we observing the total cost of the production and other way Marginal cost from the output is also increasing in the

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