How To Make A Cost Estimate For Work

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How To Make A Cost Estimate For Work
How To Make A Cost Estimate For Work

Video: How To Make A Cost Estimate For Work

Video: How to Estimate Project Costs: A Method for Cost Estimation 2022, November

Costing - calculating the cost of a unit of products, services provided or work performed. This is one of the main planning indicators. The calculation is made for work or services that are not related to the main activity of the enterprise and includes a breakdown of cost items for each type of product, work or service, established tax and other types of charges.

How to make a cost estimate for work
How to make a cost estimate for work


Step 1

The list of costs that you should take into account when drawing up a cost estimate, their composition and distribution methods depending on the type of products, services and work performed are determined by industry standards and regulations, as well as guidelines used in a particular industry, taking into account the nature and structure of production. The costs that you included in the calculation should be calculated according to the norms officially approved by the management of the enterprise or standards that are determined in the prescribed manner.

Step 2

In the calculation, in separate lines, highlight the direct costs directly related to the production of products, the performance of work, the provision of services and those costs that are considered indirect and associated with the maintenance of production. Direct costs include costs associated with the technological process of manufacturing products, the cost of consumables, raw materials, fuel and electricity costs, wages of workers and specialists, taxes and social contributions from wages. Indirect costs include the costs of preparatory work, maintenance, operation and maintenance of equipment, other production costs - selling and general expenses.

Step 3

Direct costs associated with the manufacturing technology are determined per unit of production or for a separate technological stage on the basis of direct accounting - timing, material consumption, etc.

Step 4

Those costs for which there are no direct norms and standards, including the costs of maintenance and production management, are included in the calculation of the calculation in accordance with industry methodologies and estimates.

Step 5

The absence of a calculation, which serves as the basis for the application of the tariffs and prices used, may entail the application of penalties by the regulatory authorities.

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