The adaption of product cost estimation techniques to estimate the cost of service

Huang, Xiaoxi; Newnes, L; Parry, Glenn

Abstract

This article presents an approach to ascertain whether product cost estimating techniques can be adapted for use in
estimating the costs for providing a service. The research methodology adopted consists of a critique and analysis of
the literature to ascertain how current cost estimation techniques are used. The analysis of the cost estimation
techniques provides knowledge of cost estimation, in particular for products and service with advantages and
drawbacks defined. This leads to the proposition of applying product costing methods to services. Hence, proposals
on how product costing approaches can contribute to the service industry are presented as the focus of this article.
Gaps and challenges for service costing are identified and corresponding future direction is suggested.

• Journal Article Type: Article
• Publication Date: Jan 1, 2011
• Journal: International Journal of Computer Integrated Manufacturing
• Print ISSN: 0951-192X
• Publisher: Taylor & Francis
• Peer Reviewed: Peer Reviewed
• Volume: 25
• Issue: 4-5
• Pages: 417-431
• DOI: https://doi.org/10.1080/0951192X.2011.596281
• Keywords: product, service, product cost estimation, service cost estimation
• Public URL: https://uwe-repository.worktribe.com/output/969120
• Publisher URL: http://dx.doi.org/10.1080/0951192X.2011.596281