Briefly write about the impact of technology on the cost estimation technique and its types, such as Engineered estimate of cost, Analysis at the account level, and Regression analysis.
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Q: Write a brief introduction to cost estimating techniques?
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Briefly write about the impact of technology on the cost estimation technique and its types, such as Engineered estimate of cost, Analysis at the account level, and Regression analysis.
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- Write an introduction to cost estimating techniques?Explain two approaches a seller can use to estimate variable consideration, and when each approach is likely to be more appropriate.VVH Training is a company that provides expert training sessions on how to run your business and make it profitable. They offer these training sessions in their offices and offer catering services during the sessions.You have been hired to complete a profitability analysis and you decided to start by completing a cost analysis of the business, in order to figure out for each training sessions, what costs are fixed and what costs are variable.You were able to gather the following information about the associated costs: • Instructor: $11,000 per session • Training Material: $2,500 per session and $35 per attendee • Catering Services:• Food: $75 per attendee • Setup/cleanup: $25 per attendee• Fixed fee: $5,000 per training session The catering company has also offered VVH Training a 1,000$ discount per session, if they are willing to leave their brochures on the dinner table as a form of advertising. VVH has accepted the offer saying that it is a no-brainerRequired:1. plot a graph that…
- The publishing company is publishing a book for business economics for which it has estimated the following total fixed and average variable cost: Total fixed cost $ 100,000 Average Variable Cost $ 20 Selling Price $ 30 d) Find out the publisher breakeven point if fixed cost remain same at $ 100,000 but the variable cost reduced to $10. Also find out the breakeven point if profit of $60,000 has to be earned. e) Find out the breakeven and sales at required profit of $60,000 if all cost remain same but the price per unit increased to $40.A retail store sells a popular cosmetic called Devine and the store manager was given $120,000 by the corporate office to improve store performance any way she thinks best. The "base case" information is a price of $28 per bottle, a contribution margin of 0.35, a customer defection rate of 18 percent, and a repurchase frequency of five times a year. If these improvement funds could be used to (a) increase the contribution margin to 0.40 or (b) reduce the customer defection rate to 16 percent or (c) increase the repurchase frequency to seven times per year. Assume all other variables remain at the base case level for each of the three improvement options. Use the Excel template VLC to calculate the VLC for each option and summarize your answers using the table below. Round your answers to the nearest cent. Contribution Repurchase Defection Price Margin Frequency Rate VLC in $ $28 0.35 5 18% $ (a) $28 0.40 5 18% $ (b) $28 0.35 5 16% $ (c) $28 0.35 7 18% $…A developer has requested your advice for the selling price per sg.m, of flats in an area of your choice. You should retrieve 20 asking prices for residential flats in your preferred area from agents' websites. Proceed with all necessary adjustments and estimate a value per sg.m, for a typical 2 bedroom flat that he is aiming to build. Additionally, retrieve asking rental prices for the same area and proceed with the necessary adjustments in order to estimate the ARY. Present your analysis and the way of thinking in 500 words and also support your opinion with an excel table showing your adjustments.
- Papaya Partners is a distributor of papayas. They purchase papayas from individual growers and package them in 10-pound cartons for delivery to their various customers, generally supermarkets. Last month, they budgeted to sell $500,000 worth of cartons at a price of $25 each. Actual sales met a budget of $500,000 at $25 per carton. The management has received cost information based on actual performance and needs to understand the drivers of the overall variance from the budget. They have asked you, as an analyst in their management accounting department, to calculate and explain the variances. The following data has been provided: Budget Cost of fruit @ 10 pounds per carton $ 200,000 Cost of packaging @ 1 pound per carton $ 10,000 Labor costs @ .5 hourse per carton $ 90,000 Total Cost $ 300,000 Actual Cost of fruit @ 10 pounds per carton $ 244,200 Cost of packaging @ .55 pound percarton$ 11,000 Labor costs @ .75 hourse per carton $ 150,000 Total Cost $405,200 WHAT IS THE STANDARD COST…3. A toy manufacturer makes stuffed kittens and puppies which have relatively lifelike motions. There are three different mechanisms that can be installed in these "pets." These toys will sell for the same price regardless of the mechanism installed, but each mechanism has its own variable cost and setup cost. Profit, therefore, is dependent upon the choice of mechanism and upon the level of demand. The manufacturer has in hand a forecast of demand that suggests a 0.2 probability of light demand, a 0.45 probability of moderate demand, and a probability of 0.35 of heavy demand. Payoffs for each mechanism-demand combination appear in the table below. Wind-up action Pneumatic action Electronic action Demand Light Moderate $250,000 $90,000 -$100,000 400,000 440,000 400,000 Heavy 650,000 740,000 780,000 Construct the appropriate decision tree to analyze this problem. Use standard symbols for the tree. Analyze the tree to select the optimal decision for the manufacturer.20. The Video Game Supply Company (VGS) is deciding whether to set next year's production at 2000, 2500, or 3000 games. Demand could be low, medium, or high. Using historical data, VGS estimates the probabilities as: 0.4 for low demand, 0.3 for medium demand, and 0.3 for high demand. The following profit payoff table (in $100s) has been developed. Demand Production Target Low Medium High 2000 games 2500 games 3000 games 1000 1200 1400 800 1500 1300 600 1700 1400 (a) [1] What is the maximax decision alternative? (b) [1] What is the maximin decision alternative? (c) [2] Determine the expected value of each alternative and indicate what should be the production target for next year based on expected value. (d) [1] Determine the expected value with perfect information about the states of nature. (e) [1] Determine the expected value of perfect information.
- How important are cost estimation techniques for companies?Demonstrate the steps to solve this question: Advanced Electronics manufactures DVDs and sells them directly to retailers who typically sell them for $20. Retailers take a 40 percent margin based on the retail selling price. Advanced’s cost information is as follows:DVD package and disc €2.50/DVDRoyalties €2.25/DVDAdvertising and promotion €500,000Overhead €200,000 Calculate the break-even volume in DVD units and euros.Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by letter. Finished goods Inventory,June1 $61,600 $46,200 (e) Cost of goods manufactured 329,000 (c ) 484,800 Cost of finished goods available for sales (a) $260,400 $540,000 Finished goods Inventory ,June30 72,800 61,600 (f) Cost of goods sold (b) (d) $513,600