Please help me write 100-150 words response to a reply on my discussion post.

My Post:

The "bottoms-up" method of cost analysis is the most detailed of all the techniques and the most costly to implement. It reflects a detailed build-up of labor, material and overhead costs. Estimating by engineering is typically performed after Milestone C (i.e., Low Rate Initial Production (LRIP) approval) when the design is firm, minimal design changes are expected to occur, data is available to populate the Work Breakdown Structure (WBS), drawings and specifications are complete and production operations are well-defined in terms of labor and material. This method is often used by contractors and usually involves industrial engineers, price analysts, and cost accountants. Based on the system's specifications, engineers estimate the direct labor and material costs of a work package. In calculating labor costs, company or industry standards are often used to estimate what labor categories are required and how many hours will be required for the task. The remaining elements of the work package cost, such as tooling, quality control, other direct costs and various overhead charges are calculated using factors based on the estimated direct labor and or material content of the work.

Engineering cost estimates can be quite accurate since they are usually exhaustive in covering the work to be performed by the virtue of using the work breakdown structure. These estimates also make use of insight into the specific resources and processes used in performing the work.

Reply to my discussion:

Thank you for your response to this question! You stated that if we do a lot of work, we can be accurate. Sometimes these costs of estimating offset what we save. Why do we have to have different methods for estimating costs? Depending on the volume of the various products, it is sometimes easier to have just one costing method. For example, everybody is familiar with Costco, correct? They have a flat 4% markup on everything they sell in the store. This makes manual computations a lot easier when they get in a new product.

I need a 100-150 words reply to this reply. Thanks!