Describe Top-Down Estimating

question 15

Essay

Describe top-down estimating.What are some advantages and disadvantages of top-down estimating?

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a business, including materials, labor, and manufacturing overhead.

Manufacturing Company

A business engaged in the production of goods using labor, machinery, and raw materials.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are an essential component in its production.

Factory Overhead

All indirect costs associated with manufacturing, such as maintenance, utilities, and quality control, not directly tied to the production of specific goods.