Learn how to project business costs and how accurate costs estimates add value to your projects.
- Why would anyone ever want to estimate costs? It sounds really tedious. Most people I know, avoid it at all costs, pardon the pun. Or they try to reduce costs as much as possible. But what if I told you that costs could add value to anything you do? It's true. Knowing your costs or the resources you're actually costing can determine the overall success of your efforts. Value is what cost estimating is all about. Don't believe me? Think about something of value you recently purchased like a house or a car. You probably look past the price and considered all of the short and longterm costs in your final decision. This is something cost analysts do every day. When major decisions have to be made, stakeholders want as much information as possible. What it's going to cost? What risk are they going to face? My name is Ajay Pangarkar, and I'm a fellow of the Chartered Professional Accountants. I have been involved with cost estimating and management accounting for over 20 years. I've seen the potential value cost estimating can deliver to all types of organizations, and when done well, it's powerful. Applying a thorough cost estimating approach can ensure project or investment viability. This course will help you to deliver more value, and do it within the cost limitation imposed by stakeholders. So fasten your seat belt and enjoy this cost estimating journey.
- Describe the limitations in reaching 100 percent accuracy in cost estimates.
- Differentiate between nominal, ratio, and ordinal data.
- Relate the reason for credible cost estimates to a company’s business needs.
- Determine situations in which a business would use the top-down estimating approach.
- Examine the validity of data and data collection given a scenario.
- Explore the differences between cost, value, and performance.