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Cost Esitmation, image, image - Coggle Diagram
Cost Esitmation
The Engineering Approach
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Including material, labour and overhead
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Often used in engineering, contruction, manufacturing cases
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The High Low Method
Uses the highest and lowest level of sale activity along with assoicated cost to estimate total costs
y = a + bx (y = total cost, a = fixed cost, b = variable cost per unit, x = activity)
Limitations
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Only highest and lowest values are used, might have distoreted results
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