Cost Estimating Theory

An estimate is

• a calculation of the quantities of various items of work and the expenses

• is journal which is not usable for any project especially expenses of any project

• indicating a project will 100% work based on it without any error

Costing is

• sistematic procedure for keeping your money save

• sistematic procedure for calculating an actual cost

• sistematic procedure to keep track of your daily coffee expenses.

Estimation of a project is

• a forecast of its probable cost

• a forecast of money

The purpose of cost estimating is to......

Choose all the correct answer below.

• find the cost of the manufacturing

• find the cost of operations involve

• assist in setting the price for the project

• find the cost irrelevant items

Cost estimating is importance to:-

• know the quantities of various materials

• decide the proposal cost

• matching cost with budget

• invite client's quotation

• make the meeting interesting

"Obtain the administrative and technical approval of estimate from the competence authorities to release the funds for construction."

The statement above explains about ....

• the importance of cost estimating

• the definition of cost estimating

• the side-effect of cost estimating

Aims of Cost estimation.

Choose all correct answers

• to establish world's currency

• to determine the most economical process

• to make decision

• to prepare production budget

Types of project cost are

• direct, indirect, surcharge, fixed, sunk

• indirect, sunk, variable, estimation

• sunk, fixed, variable, direct, internal

• fixed, sunk, direct, variable, indirect

'those directly linked to doing the work for the project'

The statements refers to

• direct cost

• indirect cost

• fixed cost

• variable cost

• sunk cost

'not specifically linked to your project'

The statements refers to

• direct cost

• indirect cost

• fixed cost

• variable cost

• sunk cost