Card Set Information
Rita's Tricks of the Trade
What is value analysis?
Finding a less costly way to do the same work.
What is cost risk?
Cost related to risk.
Name the types of costs:
What are examples of variable cost?
cost of materials, supplies, and wages
What are examples of fixed cost?
Cost of set-up, rent, utilities, etc.
What are examples of direct cost?
Cost of materials used on the project
What are examples of Indirect cost?
Name the 3 ranges of estimates:
Rough Order of Magnitude (ROM) Estimates
What is the range of Rough Order of Magnitude (ROM) Estimate?
-25% to +75%
What is the range of a Budget Estimate?
-10% to +25%
What is the range of Definitive Estimates?
5% to +10%
What is Life cycle costing?
Involves looking at costs over the entire life of the product, not just the cost of the project to create the product.