Importance Of Project Cost Estimation

The process of cost estimation holds great significance in every field of life. Be it a home to run or a company project to complete project estimation is necessary everywhere.

Let’s suppose we are given the responsibility by our parents to run our home for a month within a fixed budget. Will we be able to do it in the absence of a full fledged cost estimation plan?? The answer is No.

Similarly, be it any project, cost estimation is required to be done in each and every project if we want that project to get completed in an effective and efficient manner.

Cost Estimating

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These days there are advanced estimating tools in the market which make it quite easy to estimate the cost of projects.

Every project requires some sort of resources to complete the project. The resources can be in any form say cement, sand, paper, wood, steel, iron or any other article. If we want to complete the project in an effective manner it is very important to estimate the cost for all resources and services.

If we do not estimate the cost of resources required, a situation of cost escalation may arise and then the project may start costing to us. This situation can lead us to losses. To prevent this, accurate cost estimates for all the resources must be made.

Cost Estimation

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Further, accurate cost estimates are also necessary for the effective and efficient completion of the project. For instance, if we start a project without estimating the cost of the project, and in the middle of the project we run out of our budget, then will the project reach its end point?

The answer is No. Therefore, for the completion of projects in an efficient and effective manner, accurate estimates of costs are very crucial.

Also, accurate cost estimates are necessary from the goodwill point of view. For instance, if a company is not practicing Project Cost estimation, then it will definitely run out of budget at some point of time.

Will a company ever have good reputation and goodwill if it runs out of budget every now and then?? The answer is No. Therefore, to conclude we can say that Project cost estimation is crucial to every field.

Ins and Outs Of Currency Exchange Rates

Today, currency exchange is better recognized as Forex or FX trading and day by day it is increasingly becoming popular among people, who are looking for easy and quick ways to earn a living.

I am sure many of you haven’t heard people talking about the term “Forex”, I am I right Folks???

Maybe you haven’t heard about Forex before because it is not as common as the stock markets. But you must know that currency exchange rates leave a great impact on every person’s life.

In actual, forex or currency exchange rate defines the procuring power of your country, so now you can understand that it has a direct impact on each product that you purchase and every product that is shipped out. What I have explained just now is just the basics of currency exchange rate, you can collect more advanced details from this official web link:

Foreign currency exchange
Keep A Note: Exchange rate is the rate at which two countries currencies are traded. If a company does business with another country, the rate among the currencies acts as a critical component.

Point To Consider: It can be anything, mostly it is the difference between profit and loss.

Moving Forward…….Time for more briefings!!

Well, currency exchange rate is of two types, which are:

• Floating exchange rate.
• Fixed exchange rate.|

A) Floating rate: Floating price is nothing but a market driven price for currency that is intended by the free market forces of demand and supply with no central bank or government intrusion at all.

1. “Independent floating system” and the “managed floating system” are the two major components of the floating exchange system. If you need more details on floating rates, just click on this web link:

2. Earlier exchange used to be sternly determined by analyzing the free movement of demand and supply.

3. At present, in certain situations it is managed by the central bank to lessen everyday fluctuations, this type of system is known as “managed floating system”.

Currency exchange

4. Remember: Constant changes in the rate will definitely denigrate in two of the situations:

a) If supply for the currency rises or demand for the currency falls and
b) Escalate if demand rises or supply falls.

B) Fixed exchange rate: In case of fixed system, government itself shows reluctance to the country’s currency drift freely, and they state a level at which the conversation rate will stay for certain period of time.