What are the advantages and disadvantages of cost estimation?

      

What are the advantages and disadvantages of cost estimation?

  

Answers


Wilfred
Advantages
1. It enables an organization to determine the most effective way to apply resources.
2. Standard can be set using efficient usage.
3. There is control of operation by comparing actual results with the expected results

Disadvantages
1. It is costly to use as it involves experts.
2. It is not effective for controlling many types of overhead costs.
3. It is not easy to apply in non-manufacturing activities since relationship between cost and output cannot be determined.
Wilfykil answered the question on April 17, 2019 at 05:23


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