Establishing the Product Selling Price
This chapter summarizes methods for product cost estimation and pricing. The purpose of this chapter is not to provide detailed methods of cost estimation, as many excellent books are available on this topic, but to provide the reader with some idea as to what is involved in the cost estimation process. We also emphasize that cost estimation requires a diverse background on the part of the cost estimator; at the very least, the person should have a background in business, economics, finance, and engineering. It is very unlikely that one person would have all the necessary tools for this purpose, and as a result, estimating cost is often done by a team.
Note that the techniques used in cost estimation come ...
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