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The purpose of cost estimating is to find the cost of the manufacturing operations and to assist in setting the price for the product
23rd March 2011 From India, Coimbatore

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Dear Ganesh,
I have gone through the presentation, however, I have a doubt.
Suppose, I raise manufacturing facility. I invest about Rs 10 Crore in raising the factory. Further I do investment of Rs 2 Crore in purchasing the production equipment. So total Capex is Rs 12 Crore.
The above example is not in isolation but this is the case for raising small hotel or BPO facility, retail store etc.
You have not included Capex component in the break up of "components of job estimation". So how to recover this Capex in cost estimate or should I forego it?
Dinesh V Divekar
25th March 2011 From India, Bangalore
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