Describe the Effect on Cost Estimation of Four of the Following

question 63

Essay

Describe the effect on cost estimation of four of the following five problems: 1) missing data, 2) outliers, 3) allocated and discretionary costs, 4) inflation, or 5) mismatched time periods.

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Definitions:

Actual Costs

The actual expenses incurred in producing a product or delivering a service, including all direct labor, materials, and overhead costs.

Currently Attainable Standards

Standards that represent levels of operation that can be attained with reasonable effort.

Production Difficulties

Challenges or issues encountered in the manufacturing process that can lead to delays, increased costs, or reductions in product quality.

Standards

Performance goals, often relating to how much a product should cost.