As a definition, COST is the sum of factors that adds up to explain how much it really costs to make a certain product: material, transformation value added, overheads, and scrap. The PRICE is the COST plus the margin or profit. This profit is a factor of the type of industry, the location of the supplier, and mostly, a factor of the supplier’s perception of how strong are their competitors or even how close is the relationship with their customer.
Rate and Usage (Debunking the complexity behind cost models) Cost models are a very complex set of equations that can be basically explain very simply, Rate X Usage. This explanation is a great training aid and helps win over skeptics. This all boils down to RATE X...
When I started at my previous employer one of the first things I did was to ask for a copy of some of the supplier quotes. To my surprise these were usually noting more than a paragraph or two stating the price and volumes. When I asked where the Cost Breakdown was, I got everything from blank stares to responses like “You can’t ask for that, it’s illegal.” to “That proprietary information, and against company policy to ask for.”
We are proud to post our first three professional Cost Engineering positions. If you are a professional Cost Engineer, please check them out on the Employment Opportunities Page https://societyofcostengineers.com/members-only-pages/employment-opportunities/
Today marks a great day in the history of the Society of Cost Engineers. Today we posted the first of what we hope to be many resumes in the effort to assist Cost Engineers in finding great professional job opportunities.
More importantly we’ve added our first Corporate Sponsor, FACTON. We are very pleased and proud to be associated with them.
The price / Cost of anything can be broken down into as few as 5 cost buckets and still be a valuable tool. The basic 5 bucket are: