Pinto pm5 Inppt 08
Pinto pm5 Inppt 08
Pinto pm5 Inppt 08
Competitive Advantage
Fifth Edition, Global Edition
Chapter 8
Cost Estimation and
Budgeting
• Labor
• Materials
• Subcontractors
• Equipment and facilities
• Travel
Yx aX b
Where :
Yx = the time required for the x unit of output
a = the time required for the initial unit of output
X = the number of units to be produced
b = learning curve slope = log learning % log(2)
• Top-down
• Bottom-up
• Activity-based costing (ABC)
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Activity-Based Costing
Months Total by
Activity January February March April May Activity
Survey 4,000 Blank Blank Blank Blank 4,000
Design Blank 5,000 3,000 Blank Blank 8,000
Clear Site Blank 4,000 Blank Blank Blank 4,000
Foundation Blank Blank 7,500 Blank Blank 7,500
Framing Blank Blank Blank 8,000 2,000 10,000
Plumb and Wire Blank Blank Blank 1,000 4,000 5,000
Monthly Planned 4,000 9,000 10,500 9,000 6,000 Blank
Cumulative 4,000 13,000 23,500 32,500 38,500 38,500