Practical Price Analysis: Cost Breakdown & Valuation Methods

Posted on Jan 28, 2025 in Business Administration and Innovation Management

Practical Price Analysis

1) Analysis of Prices: The rationale for the price of each item is the budget of the work. It is formed by the addition of the following:

• Cost of Materials: Cost-price or cost of application
• Cost of Labor
• Overhead
• Final Cost Benefit of the Work
• Taxation
• Financial Cost
• Other Eventual Costs
• Contingencies
• Security
• Fee

2)

• A if
• B if
• C if
• D if
• E if
• F no
• G if
• H if

Cost-cost + overhead + profit + financial expenses

• • Compensation fund
  • Upon completion of the work
  • This cost ranges between 1.5 and 0.75% quarterly value of the collateral. It depends on the size of the company, its history of compliance and counter offering. It is less onerous offers less risk to the entity that issues it.

3)

• The good: the object of the appraisal
• The market for which the value or price forecast
• The date is that the operation is performed

• 4)

  • Decline in the economic value of an asset.

  A reduction of earnings expressed in monetary units and due to a deterioration in the physical asset due to: wear, age, physical decay, inefficiency, obsolescence, neglect of conservation.

  5) is determined by different methods: straight-line method, kuentzle formula, formula Ross heideoke formula.

  6) The unit value of $ / m2 division arises from the following: cash price / homogenized surface, we must consider to form a prognosis comparable to and from there get the unit value as follows:

  1. The smallest and largest value
  2. We averaged the means
  3. Multiply the unit value obtained by the rate of total own tax department homogenized on the surface thereof.
  • Comparative appraisal methods are the most used in our country. Where are they?
  • They consist of direct comparison of background: land, buildings and ensembles. This allows us to obtain the value pricing, with reference to comparable, taking into account the nature of good, based on the principle of substitution.

  – The method of comparing market value with homogenization background:

  1. Is the most suitable for pricing: properties
  2. The advantage of this method is the procedure of information, by comparing the goods of the same nature, knowing the actual characteristics of the well, giving the value of appraisals.
  3. It consists of: using a spreadsheet, where you enter information about the property (background) processing the information for the unit value for the surface using homogenization coefficients as multipliers, adding the rate of supply. All coefficients are multiplied together, resulting in a leading coefficient, this value is multiplied by their respective unit value, then the unit values ​​are averaged to obtain the final unit value.
  4. What is the homogenization of surfaces? A functional unit usually has different surface types: roof, semibubierta, balcony, bare.

  It can not be rated a surface covered a balcony or patio. Because the proportions of those combinations are different for the purposes of comparing different functional units in the appraisal process for market value. Coefficients should be fixed homogenization, with the aim of bringing all these surfaces to be covered surfaces.