Pinto Pm2 Ch08
Pinto Pm2 Ch08
Pinto Pm2 Ch08
and Budgeting
Chapter 8
Labor
Materials
Subcontractors
Travel
Non-recurring
Expedited
Recurring
Variable
Normal
Indirect
Direct
Fixed
Costs
Direct Labor X X X X
Building Lease X X X X
Expedite X X X X
Material X X X X
Comparative 15%
Feasibility 10%
Definitive 5%
Yx aX b
Where :
Yx = time required for the x unit of output
a = time required for the initial unit of output
X = the number of units to be produced
b = learning curve slope = log(learning %)/log(2)
Lack of definition
Specification changes
External factors
Top-down
Bottom-up
Activity-based costing (ABC)