The Cost Bar is a graphic illustration that highlights all the key elements of cost for producing a product or delivering a service.
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The start of a cost analysis that breaks down the cost of the good or service into its individual costs drivers.
See cost reimbursement.
In accounting, any situation or event that causes a change in the consumption of a resource, or influences quality or cycle time. An activity may have multiple cost drivers. Cost drivers do not...
A tool used during the strategic sourcing process to identify all supply chain costs of the good or service. It is best used in beginning stages of the sourcing effort and works to justify the...
Detailed financial models that capture input costs (such as materials, labor and overhead) and use a formula (based on previous yields, Bills of Material, total capacity) to calculate the total...
The contractor is paid a higher fee if he meets certain performance metrics or benchmarks for successful performance.
The contractor will get back costs plus a predetermined designated amount. This amount does not change regardless of how much is spent on materials.
The contractor receives a larger fee if he or she meets certain goals such as keeping costs down or completing the project in a designated time.
A contractor's fee rises as the actual costs rise. This is disfavored because there is no incentive for cost control on the part of the contractor, and the federal government is prohibited...