ABSTRACT
The main objective of every business is to generate a profit. Profit is the difference between total income from sales of goods or services and the total cost of all inputs utilized during a specified time period. The emphasis is on lowering and controlling costs because enterprises in a competitive market have little influence on the selling price. To effectively manage the cost, it is important to adopt cost engineering principles and techniques for estimation, analysis, and control of cost throughout the life cycle of the product or project. Cost estimation, budgeting, and cost control are key elements of cost engineering. Also, managing operational expenses is crucial for both production and business. Another factor that is becoming important is to understand the total cost incurred by the product or service or system throughout its lifecycle which is popularly known as Life Cycle Cost.
