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Cost Estimating, 2nd Edition, by Rodney D. Stewart
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This revision of the author's bestselling earlier work on cost estimating has been updated to provide currently applicable examples, data and techniques. Two new chapters have been added covering: computer tools and models for cost estimating, where to get these tools, and the features to look for; software cost estimating with special emphasis on the effect of CASE tools on software productivities and resulting software costs. A complete set of inflation tables is now included to permit conversion from any year dollars to any other year dollars from 1959 through 1997. Retains its comprehensive coverage of the elements needed to embark on a cost estimating task. Strengthened are the invaluable parts of the book which tell the estimator how to produce a competitive and credible cost estimate. Manufacturing standards for hardware and electronics are retained as are handy tables for determining the costs of engineering, design, documentation, drafting and testing.
- Sales Rank: #1042942 in Books
- Published on: 1991-01-02
- Original language: English
- Number of items: 1
- Dimensions: 9.50" h x .90" w x 6.30" l, 1.50 pounds
- Binding: Hardcover
- 384 pages
Most helpful customer reviews
4 of 4 people found the following review helpful.
Great tool for pricers!
By Bobbycarll
I was a cost estimator by trade and training. This is one of the few text books I've found that has a lot of real-world application and value. If your business requires that you prepare detailed, auditable proposals with solid 'Bases of Estimates,' this is a good book for your library.
3 of 3 people found the following review helpful.
A good first book on the subject although it contains errors.
By JCronkite
I am in the CMA program however a large part of my work involves manufacturing cost estimation. I thought I would buy this book to learn a little more. If you are new to cost estimating I recommend this book as a good first step to use as an overview of the process. If you have studied cost accounting to any degree it may not be worthwhile as it is a rehash of things you probably already know.
One error (pg 150) is disturbing to me from an author that is discussing cost estimation. He used the term "Profit margin" when giving an example of "Markup". This is accounting 101 stuff and the fact that an authority on cost estimation would make such a basic mistake like that is odd.
He claims a product that cost 10,000 dollars with a 20% profit margin would sell for 12,000 dollars. Profit margin = ((Selling price - cost)/selling price)X100.
((12,000 - 10,000)/12,000)x100 = 16.67%
This is so simple to verify if just looking at cost. A product that cost 10,000 dollars with a desired profit margin of 20% could be figured as cost/(1-profit margin) or 10,000/(1-.2)= 12,500 dollars.
What he used was markup-
COST x MARKUP PERCENTAGE = MARKUP AMOUNT
COST + MARKUP AMOUNT = SELLING PRICE
3 of 3 people found the following review helpful.
Good basic, some material is out of date, mistakes in exercises
By M. Jenkins
This book costs *way* too much. Its apparently still the "go to" book for cost estimating, even though it was published quite a while ago. Several chapters near the end talk about software cost estimating using material that is now so old as to be useless. Apparently the basic approach to cost estimating hasn't changed much since the book was published, nor have the financial analysis approaches. There are far more mistakes in the exercises in the book than one would expect. Having said all that, it was the required text for a class in cost estimating, so I bought it, read it, and will probably keep it around to use in the future. I'm glad I was able to get it used but in great condition, as it meant I paid only about $65 for it instead of the $140 or so asking price new.
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