How Do I Become a Cost Estimator?

Cost budgeting is the process of allocating estimated total costs to various work items to establish budgets, standards, and inspection systems. Through this process, the investment cost of the system project can be measured and managed, so that the problem can be identified in advance and corrective measures can be taken in time. The baseline cost can be obtained by estimating the cost of the project details identified in the work analysis structure. Many projects, especially large ones, have multiple benchmark costs to measure different aspects of their costs. For example, an expense plan or cash flow forecast is a benchmark cost to measure payments. ^[1]

Cost budget

Cost budgeting is the process of allocating estimated total costs to various work items to establish budgets, standards, and inspection systems. Through this process, the investment cost of the system project can be measured and managed, so that the problem can be identified in advance and corrective measures can be taken in time. The baseline cost can be obtained by estimating the cost of the project details identified in the work analysis structure. Many projects, especially large ones, have multiple benchmark costs to measure different aspects of their costs. For example, an expense plan or cash flow forecast is a benchmark cost to measure payments. ^[1]

The budget preparation items mainly include: cost expense budget, income budget, asset liability budget, functional department expense budget, financial indicator budget, capital budget, cash flow budget.

(1) Cost budget, including operating cost budget, manufacturing cost budget, operating

After repeated discussions and revisions of the main departments of the Group's headquarters, the budget documents were issued in the form of paper documents to their subordinates and holding companies. In order to facilitate the summary of the departments, the financial department uniformly produced budget forms and floppy disks and issued them uniformly. In order to prevent ambiguity in understanding among companies, the finance department must convene a budget arrangement meeting specifically, and require the budgetary staff of the subsidiary company, the holding company, and various functional departments to participate. The budget manager of the finance department will explain the budget principles and requirements one by one.

Principles of budgeting: In order to rationally allocate the financial resources of the company, the group financial department first determines the development direction of each unit according to the company's medium and long-term development planning and strategic development requirements and formulates budgeting principles. Budgeting principles generally include:

(1) OK

Budget documents are generally issued in October of each year, and the compilation is based on the actual completion of January to September of that year, and the forecast is used for the next three months. After the budget preparation unit reports the budget within the prescribed time, some of the enterprise budget preparation may not meet the requirements of the headquarters, and some are technical, but more often the cost control, revenue, and profit indicators fail to meet the requirements of the headquarters, which requires Each focal point spends a lot of energy to analyze the budget and

After the budgets of various units and departments have been revised several times to meet the requirements of the headquarters, they will be signed and confirmed by the headquarters, and the headquarters will issue a budget approval opinion. The approved budget should be fixed in a clear way, which is the target responsibility letter (produced by the financial department of the headquarters). The target responsibility letter generally includes business volume, operating income,

In order to check the implementation and results of the budget, the results of the budget assessment must be linked to the wages and bonuses of each unit, and to the appointment, removal, promotion, reward and punishment of managers. The assessment is generally twice a year. The semi-annual assessment is mainly based on the statement assessment. It is found that the unit that has not completed the planned task according to the time schedule must do a key analysis, and if necessary, it must go to the company to investigate. Yes, we need to adjust the plan. Year-end assessments are generally large-scale and time-consuming, and the leadership of the headquarters must attach great importance to them. Generally should be carried out in the following steps:

Correctly preparing the cost budget can indicate the goals of the cost management work of the company's budget period and provide a direct basis for cost management; moreover, the cost budget can mobilize and organize all employees to calculate carefully, tap potential, control cost consumption, and promote effective enterprises We will use human, material, and financial resources to improve management, and obtain better economic benefits with as little labor as possible. At the same time, the cost budget can also be used as an evaluation standard for the performance of property management companies. ^[2]