I’m working on a Business question and need guidance to help me study.
Part 1: Explain what the should-cost methods is and provide an example. Reference 2 sources.
Defense Contract Audit Agency’s Information For Contractors located at http://www.dcaa.mil/cam.html
Part 2: What is the basis of estimate (BOE)?
What do you think makes up a good BOE? Why are they important?
How are cost captured in contractor proposals, i.e., indirect versus direct cost?
What is the difference between cost and price?
Who do you think has input/estimates of contractor proposals?
DFARS amendments located at http://www.wileyrein.com/publications.cfm?sp=artic…
Article Link: http://www.businessnewsdaily.com/5498-direct-costs…
Focus on methods or ways to calculate a cost objective for direct material, direct labor, other direct costs, indirect costs, facilities cost of money, and profit/fee. The first question is what are some of the current issues or problems with the process of making such calculations? The second question is how these calculations are used with regards to risk?
EACH PART MUST BE 250 Words.
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