The Factors That Have a Vital Role in Cost Estimations

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Cost Estimations Factors:


The process of cost estimating is calculating the expected cost or performing each activity. For calculating costs the following are taken into account:

  • Cost of Labor
  • Cost of Material
  • Cost of Equipment
  • Other Direct Costs

The costs are calculated in monetary terms. Any unanticipated occurrence can lead to a substantial rise or decline in the cost estimates.

The table below illustrates the inputs, tools and techniques and outputs as it relates to cost estimating.

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