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17 - Lect 17 - Project Cost Control (Dec 2011)
17 - Lect 17 - Project Cost Control (Dec 2011)
TYPES OF COSTS:
1. STANDARD COSTING:
STANDARD COST is defined as a pre-determined cost based upon
engineering specifications and representing highly efficient production for
quality standards and forecasts of future market trends.
IMPLIES THAT:
1. a) For the estimated total output for the future period, the cost per unit is
determined in advance for materials, labour and overheads.
b) The cost is based upon past experience, experiments and specifications
drawn up by the technical staff.
c) The cost is expressed in rupees, considering firm estimates in respect of
prices and rates that are likely to prevail.
2.
HISTORICAL COSTS:
3.
ESTIMATED COSTS:
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Evaluate:
Progress vs Plan
Variance
Trends
Productivity
Forecasts
Modify Plan
Control
OUTPUT
Analyze
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(cont..)
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2.
3.
4.
5.
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End of Lecture
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