This book provides the business professional a concise guide to the creation and effective use of both internal and external cost models. Development of internal cost models is discussed on how they can be deployed to assist in new product development, pricing decisions, make-or-buy decisions, and the identi cation of opportunities for internal process improvement projects.

Table of Contents

• List of Illustrations
• Acknowledgments
• Abbreviations and Acronyms
• Chapter 1 Introduction
• Chapter 2 Constructing Cost Models
• Chapter 3 Internal Cost Models
• Chapter 4 Other Internal Cost Models
• Chapter 5 External Cost Models for Procured Materials
• Chapter 6 External Cost Models for Procured Services
• Chapter 7 Total Cost of Ownership Models
• Chapter 8 Probabilistic Cost Models
• Epilogue
• Appendix A: Data Sources for Cost Modeling
• Appendix B: Simulation Software Used to Illustrate Chapter 8
• References