Questions and Answers on Cost Estimation - Paper Example

What is cost estimation?

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Cost estimation is the approximation of the probable total cost to be incurred in purchasing a product, resource, good or service for the purpose of planning, preparation of sales quotes as well as resource allocation (Larson & Gray, 2014). It can also be said to be the predicting the cost of activities and assets by separation of mixed costs into fixed and variable components.

Why we use cost estimation?

The ultimate goal of cost estimation is to establish:

Whether a prospective venture is worth taking and cost effective. This is essential in assessing the economic feasibility of a project.

The fixed and variable costs as well as formulate a formula which will be used to predict future costs.

The affordability and performance of a project against plans set out. Ideally, this helps in the selection of alternative systems and solutions.

The accuracy of cost estimates and thus aid at assessing the quality, communications, scope, human resource, risk, procurement management as well as time management.

A supporting platform for the preparation of a budget. The provision of estimates helps understand the cost outlay expected to be incurred in acquiring or running a project efficiently.

The most efficient investment decisions to make. Thus, it is essential when it comes to the selection of alternatives. Breaking down the project into manageable parts to allocate appropriate resources requires the preparation of a cost estimate schedule is needed.

A brief explanation of the program

In developing the above cost estimate program, the approximation was used. For example, to establish the total cost of sending employees overseas, the cost of sending one employee which is approximate $330 was multiplied by 15 to get the full value. The cost, in this case, involved getting the transportation costs as well the provision of any miscellaneous expenses incurred in executing the dynamic selection process which takes approximately seven months. Thus, ($130*15 =$4950). To compute the cost of screening costs which included mental, physical as well as passport validity expense, $12.75 (cost of screening one employee) is multiplied by 15, the total cost equals to $191.25. To apply for visas, an employee would incur approximately $160, and the total cost of the 15 employees will amount to $2,400. To develop the contracts for the employees, $30 which is the cost of preparing a contract for one employee was multiplied by the number of 15 employees to get $750 over the period of 1 month.

Cost Estimation:

Project Activity Cost Time

1 Argyle Associates Project 2 Determine how many job positions and what kind of positions are needed for deployment $30 2 days

3 Develop recruitment strategy for overseas deployment $330 7 months

4 Select 15 employees for overseas deployment $4950 7 months

5 Screen (mental health, physical health, passport validity) 15 employees 12.75*15 = $191.25 3.75 months

6 Apply for working visa for 15 employees 160*15 = 2,400 6 months

7 Develop contracts for 15 employees $750 1 month

8 Develop recruitment strategy for temporary, replacement employees $113 1 month

9 Culture Training $2,000 18 months

10 Leadership and Management Training $19 0.5 months

11 Dental Practice/Argyle Associates Standards $2,000 1 month

12 Mental Health Coping Training $600 0.5 months

13 Team Building Workshop $400 0.5 months

14 Develop Insurance Policies $450 1/3 months

15 Select and Secure Accommodation and Daily Travel in Sweden Core $479 1 month

16 Develop travelling schedule $135 0.5 months

17 Develop everyday work schedule $50 0.4 months

18 Develop vacation schedule $ 40 - 1/3 month

19 Develop and book travel schedule and incentives $ 35 - 2/3 months

20 Developing social outlets while on deployment $120 0.2 months

GRAND TOTAL $ 3034.25 49.253 months

Salary

Nurse 32.86/hrSupervisor nurse 17.75/hrDental assistant 26/hrSupervisor dental assistant 19.8/hrReceptionists 14.48/hrSupervisor receptionists 12.00/hrOral sergeants 127,000/year

Supervisor oral sergeants 58,113/year

Marketing $9/hrHuman resource representative 19.94

HOUSING

Price of apartment in Gothenburg (Sweden) Price per square meter in city center $6320

Price per square meter outside of city center $3586.70

Monthly rent 45m2 furnished $681

Tkt Price Economy class insurance : Cost of international and insurance. Cost of international and insurance. ANNUAL rates: Student $2,294.25

Spouse $2,185

All children $3,762

References

Background Check Pricing | Background Screening Solutions. (n.d.). Retrieved from http://www.infocheckusa.com/background-check-pricing.htmCost of a Background Check: How Much Should You Pay? (n.d.). Retrieved from http://blog.verifirst.com/blog/bid/305407/cost-of-a-background-check-how-much-should-you-payError 429 (Too Many Requests) - Quora. (n.d.). Retrieved from https://www.quora.com/What-are-a-tour-leave-or-deployment-of-the-U-S-Military-and-how-do-they-workHow Much Does it Cost to Visit Sweden? (n.d.). Retrieved from http://www.nomadicmatt.com/travel-blogs/the-cost-of-traveling-sweden/Intern USA Participant Fees - Intern USA - Travel Abroad | InterExchange. (n.d.). Retrieved from https://www.interexchange.org/travel-abroad/intern-usa/fees/Labour market information - Job Bank. (n.d.). Retrieved from https://www.jobbank.gc.ca/explorecareers.doLarson, E., & Gray, C. (2014). Project Management: The managerial process, sixth edition. McGraw Hill.

Larson, E., & Gray, C. (2014). Project Management: The Managerial Process, sixth edition. McGraw Hill.

Ottawa Tooth Removal/General Anesthetic Help! : ottawa. (n.d.). Retrieved from https://www.reddit.com/r/ottawa/comments/2i17qy/ottawa_tooth_removalgeneral_anesthetic_help/?st=j0lovuze&sh=26e0f79

Pricing Matters - Cost Proposals for Government Contracts - APTAC - Association of Procurement Technical Assistance Centers. (n.d.). Retrieved from http://www.aptac-us.org/cost-proposals-government-contractsRecruitment strategies for minority participation: challenges and cost lessons from the POWER interview. - PubMed - NCBI. (n.d.). Retrieved from https://www.ncbi.nlm.nih.gov/pubmed/16108298Team Building corporate fun days adventure venues adventure activities. (n.d.). Retrieved from http://www.rockup.co.nz/PRICES/TEAM+BUILDING+PRICE+GUIDE.html