Cost Estimator's Reference Manual / Edition 2

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In today's hypercompetitive global marketplace, accurate cost estimating is crucial to bottom-line results. Nowhere is this more evident than in the design and development of new products and services. Among managing engineers responsible for developing realistic cost estimates for new product designs, the number-one source of information and guidance has been the Cost Estimator's Reference Manual.

Comprehensive, authoritative, and practical, the Manual instructs readers in the full range of cost estimating techniques and procedures currently used in the fields of development, testing, manufacturing, production, construction, software, general services, government contracting, engineering services, scientific projects, and proposal preparation. The authors clearly explain how to go about gathering the data essential to preparing a realistic estimate of costs and guide the reader step by step through each procedure.

This new Second Edition incorporates a decade of progress in the methods, procedures, and strategies of cost estimating. All the material has been updated and five new chapters have been added to reflect the most recent information on such increasingly important topics as activity-based costing, software estimating, design-to-cost techniques, and cost implications of new concurrent engineering and systems engineering approaches to projects.

Indispensable to virtually anyone whose work requires accurate cost estimates, the Cost Estimator's Reference Manual will be especially valuable to engineers, estimators, accountants, and contractors of products, projects, processes, and services to both government and industry.

The essential ready-reference for the techniques, methods, and procedures of cost estimating


Indispensable for anyone who depends on accurate cost estimates for engineering projects, the Cost Estimator's Reference Manual guides the user through both the basic and more sophisticated aspects of the estimating process. Authoritative and comprehensive, the Manual seamlessly integrates the many functions—accounting, financial, statistical, and management—of modern cost estimating practice. Its broad coverage includes estimating procedures applied to such areas as:
* Production
* Software
* Development
* General services
* Testing
* Government contracting
* Manufacturing
* Engineering
* Proposal preparation
* Scientific projects
* Construction

This updated and expanded Second Edition incorporates all the most important recent developments in cost estimating, such as activity-based costing, software estimating, design-to-cost techniques, computer-aided estimating tools, concurrent engineering, and life cycle costing.

For engineers, estimators, accountants, planners, and others who are involved in the cost aspects of projects, the Cost Estimator's Reference Manual is an invaluable information source that will pay for itself many times over.

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Editorial Reviews

A comprehensive reference that provides information and guidance for managing engineers responsible for developing realistic cost estimates for new product designs. It guides users through both the basic and more sophisticated aspects of the estimating process, integrating the accounting, financial, statistical, and management functions. This updated and expanded edition (first was 1985) incorporates important new developments in cost estimating, such as activity-based costing, software estimating, design-to-cost techniques, computer-aided estimating tools, concurrent engineering, and life cycle costing. Annotation c. Book News, Inc., Portland, OR (
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Product Details

  • ISBN-13: 9780471305101
  • Publisher: Wiley
  • Publication date: 4/3/1995
  • Series: New Dimensions In Engineering Series, #15
  • Edition description: REV
  • Edition number: 2
  • Pages: 744
  • Product dimensions: 1.63 (w) x 6.14 (h) x 9.21 (d)

Meet the Author

RODNEY D. STEWART is President of Mobile Data Services, and senior staff consultant for Science Applications International Corporation (SAIC) and Computer Systems Technology. He has served as project engineer and project manager with the National Aeronautics and Space Administration, and as manager of the cost analysis office in the Systems Analysis and Integration Laboratory of NASA's George C. Marshall Space Flight Center in Huntsville, Alabama. He is a past national president and past national policy director of the National Estimating Society, and a certified cost estimator/analyst (CCE/A).

RICHARD M. WYSKIDA, PhD, is Professor of Industrial and Systems Engineering at the University of Alabama in Huntsville. His research has involved the minimization of system cost via the optimization techniques of operations research. He is a senior member of the Institute of Industrial Engineers, a member of INFORMS, a member of the American Society for Engineering Education, and a registered professional engineer in the state of Alabama.

JAMES D. JOHANNES, PhD, is Dean of the School of Graduate Studies and Professor of Computer Science at the University of Alabama in Huntsville. He has served as principal investigator on numerous computer software projects during the past twenty years at the University. His professional affiliations include the American Association for Artificial Intelligence, the Association for Computer Machinery, and the IEEE Computer Society.

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Table of Contents

Fundamentals of Cost Estimating.

Activity-Based Costing and Traditional Cost Allocation Structures.

Statistical Techniques in Cost Estimation.

Discounted Cash Flow Analysis.

Learning Curves and Progress Functions.

Detailed Cost Estimating.

Parametric Estimating.

Risk Analysis for Cost/Schedule/Technical Performance.

Design to Cost.

Construction Cost Estimating.

Cost Estimating in Manufacturing.

Cost Implications of Systems/Concurrent Engineering.

Aspects Affecting Cost Estimation in Government Procurement.

Computer-Aided Cost Estimating.

The Software Acquisition Process.

Software Development Effort Estimating.

Software Life Cycle Cost Estimation.

Artificial Intelligence in Cost Estimating.

Cost Estimating as a Profession.

Dictionary of Estimating Terms.


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