"Cost estimation" refers to the process of determining the total costs of a project or task by analyzing various cost factors such as labor hours, material costs, equipment expenses, and other relevant expenditures.
Typical functions of software in the field of "cost estimation" include:
Cost Information Capture: Capturing and managing data on various cost components, including labor costs, material costs, operating expenses, etc.
Labor Cost Calculation: Calculating costs based on labor hours, wage rates, and other labor-related expenses.
Material Cost Estimation: Estimating costs for materials based on quantities, prices, and other relevant information.
Consideration of Overhead Costs: Incorporating indirect costs such as administrative fees, operating expenses, and general expenses into the overall cost estimation.
Adjustment Capabilities: Ability to adjust cost calculations based on specific project parameters, changes in project scope, or other variables.
Reporting and Analysis: Generating reports and analyses to provide a detailed breakdown of total costs as well as comparisons with budget targets or actual expenditures.