Cost estimation: Importance and aims of cost estimation – functions of estimation – difference between estimating and costing – importance of preparing realistic estimates – estimating procedure. Elements of cost, Objectives – elements of costs – ladder of cost – determination of material cost – labour cost – expenses.
Analysis of overhead expenses, Distribution of overhead costs – depreciation – causes of depreciation – methods of calculating depreciation.
Estimation of machining time, Calculation of machining time for lathe operations-estimation of drilling time on drilling machine – estimation of time for shaping, planning, milling and grinding.
Costing for metal forming and fabrication processes, Estimation of cost in welding- estimation in forging shop – cost estimation of foundry work.