a project and reduce uncertainties. In the context of cost, risk management uses cost risk analysis as a tool to identify risks and then mitigate the risks. By looking at the uncertain variables within a situation, a risk analysis can show which those that have the most effect on the solution and pinpoint where most effort should be targeted. The risk analysis makes sure that uncertainty within the variable can be accounted for before committing the project. Therefore, the outcome of the analysis can be used as a decision tool for the designer. That is, if the designer understands the risks involved with certain cost drivers, he can choose a different approach to lower the
risk. Thus, using risk assessment and risk analysis ensures that the consequences of risks to a programme cost and schedule are understood and taken into account for the commercial bid on programme price and duration. Since estimating is based on assumptions concerning the likely cost of an, as yet, unknown product outcome there is an increasing trend to combine the statistical techniques of parametric cost analysis with statistical risk analysis methods. Parametric estimating, because of its statistical approach, offers the cost analyst the advantage of being able to quantify the risk of an estimate. Risk management ensures that the goals of the producer and consumer materialist and that they both benefit. It provides confidence concerning final costs and identifies actions needed to keep cost and schedule on target (Heinmuller and Dilts 1997). One of the most important benefits of using risk assessment is to generate a distribution/range of costs, i.e. to move away from single point estimating, since a range of costs are much easier to estimate than a single cost [Forsberg et al. 2002]. Furthermore, once a risk analysis has been conducted the analyst can consider ways to reduce the risk, e.g. by avoidance, deflection or contingency, and then plan accordingly to control the reduction process.
Costing Methods
Costing is important because it provides a quantified basis for defining poverty reduction strategies and programs, as well as for forecasting resource gaps and needs, and for mobilizing additional resources, either internally or externally.
While it is usually not possible to obtain reliable cost estimates for the long-term, costing is essential for coordinating the national budget and aid allocations with the prioritized development goals. The price tag and the financing plan of the programs or projects can only be ascertained meaningfully within a short-to-medium time horizon.
Three elementary types of costing methods are generally used, differing in their means of allocating overhead costs to products, these being the traditional absorption costing method, plus the variable costing and activity-based costing methods. All of these have been written about at length by various authors (Drury- 2001, Kr?-2006). Traditional costing techniques, represented by the absorption costing method, were used for the purposes of overhead cost allocation in the last century. These are based on simplified procedures using principles of averages. In recent decades, such conventional concepts have become obsolete due to two major phenomena. The first is ever increasing competition in the marketplace, the necessity
to reduce costs and the effect of having more detailed information on company costs.
本论文由英语论文网提供整理,提供论文代写,英语论文代写,代写论文,代写英语论文,代写留学生论文,代写英文论文,留学生论文代写相关核心关键词搜索。