11

1. 'PARSHVA CLASSES', [FOR ENGG. - DIPLOMA & DEGREE] [[ 1 ]]5/18
ESTIMATING, COSTING & CONTRACTING
T.Y.
Mech.
 O
Mob.
FATEHGUNJ BRANCH :
SB-17, EMPEROR COMPLEX,
BESIDE " GOODIES "
FATEHGUNJ,
VADODARA.
SHREE PARSHVAJAY AMBE PRAKASH K. BHAVSAR'S
PARSHVA CLASSES
[ FOR ENGINEERING ]
DEGREE & DIPLOMA MSU & GTU
A NEW NAME OF 'GURU CLASSES'
HEAD OFFICE :
PANKIL CHAMBERS,
KHATRI POLE,
B/H. JUBILEE BAUG,
RAOPURA, VADODARA.
WAGHODIA BRANCH :
3-GAJANAND SOC.,
ABOVE INDIAN OVERSEAS
BANK, UMA CHAR RASTA,
WAGHODIA ROAD, VADODARA.
PAPER’S QUESTIONS (3351905)
Unit - I : Introduction
[2 Marks]
[1] Define Costing and Contracting.
[2] Define costing and estimation.
[3] Write the advantages of cost estimation.
[4] State the quality of Estimator.
[5] Explain in short the objectives of cost estimation.
[6] Explain man–hour rate method for overhead allocation.
[7] Explain variable cost with examples.
[8] Define (a) direct material cost, (b) direct labour cost.
[9] Define (i) book value, (ii) salvage value.
[10] Define depreciation and obsolescence.
[11] Define (i) Salvage value, (ii) Cost accounting, (iii) Non productive cost, (iv)
Book value.
[12] What is factory cost ?
[13] Define ‘book value’.
[14] List reasons for depreciation. [List the causes of depreciation.]
[15] Explain unit rate method for overhead allocation.
[16] Write equation of finding depreciation by straight line method.
[17] Write down the equation for finding overhead cost as per unit rate method.
[3 Marks]
[] Define costing, State at least six advantages of costing.
[] List and explain the assumptions made in breakeven analysis.
[] Explain procedure for constructing breakeven chart.
[] ‘Breakeven analysis is a management tool’-Explain it.
[] Discuss the skills required for an engineer to become good cost estimator.
[4 Marks]
[] Differentiate between estimating and costing. [3 or 4 Marks]
[] The catalogue price of motor is 10,000.The discount given to distributor
is 10 %. The selling overhead is 25 % of factory cost. The direct material
cost, direct labour cost and factory overheads are in the ratio of 1:4:2. If
the direct material cost is 800, calculate be the profit on each motor.
[] Market price of a pattern is 300. Discount offered on market price is nil.
Material cost, labour and overheads are in proportion of 1:2:3. If labour

2. 'PARSHVA CLASSES', [FOR ENGG. - DIPLOMA & DEGREE] [[ 2 ]]5/18
cost is 60 per pattern then calculate the profit per pattern.
[] A firm produces 1000 pens per day. The material cost is found to be
1600, the direct labour cost is 2000 and factory on cost chargeable is
2500. If the selling on cost is 40% of the factory cost, what must be the
price of each pen to release the profit of 14.6 % of the selling price ?
[] Find selling price of a steel table, if the prime cost 3000 tables is 1,50,000.
Factory overheads are 60% of prime cost, administrative overheads are
40 % of factory cost and selling over heads are 30 % of office cost, and
20 % profit on total cost.
[] A lathe machine is purchased at a price of 60,000 has its useful life of 15
years. Its scrap value is 10,000.Calculate the depreciation per year by
sinking fund method. Rate of interest for depreciation fund is 12 %.
[] A m/c was purchased at 3000,the transportation and installation charges
are 400 and 600 respectively. Useful life is 8 years, scrap value is 300.
Find the rate of depreaciations per year by straight line method. 05
[] A machine was purchased for 50,000. It was commissioned on 1st Jan
1992. The erection and installation charges are 5000. This machine was
removed on 31st Dec 2012. And its residual value is 15000. Find
depreciation rate.
[7 Marks]
[] List and discuss different methods of overhead allocation.
[] The market price of a lathe is 50000.The distributor is given 10 % discount.
Selling expenses are equal to factory expenses. If material cost, labor cost
and factory over heads are in the ratio of 1:4:2 and material cost is 4000,
find the profit released on the lathe machine. [6]
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Unit - II : Break Even Analysis
[2 Marks]
[] Write the needs of B.E.P. in Industry.
[] State different elements of cost.
[] Define (a) Economic Batch Quantity,(b) Obsolescences.
[] Show in Break Even Chart the effect of decreased sales revenue.
[] State the limitations of Break Even Chart.
[] List different elements of Cost.
[] Explain the profit/loss at breakeven point.
[] Give five examples of variable cost.
[Explain variable cost with example.]
[] What is economic batch quantity ?
[Determine formula for economic batch quantity.]
[] Explain breakeven point.
[3 Marks]
[] Draw the break even chart indicating break even point.
[] Explain the effect of total cost on break even point.
[] List the benefits of profit volume graph and profit volume ratio.
[] Write a short note on margin of safety.
[] State the limitations of breakeven analysis (chart).
[] Write the assumptions made in construction of Breakeven chart.
[] Drive relation for profit-volume ratio.

3. 'PARSHVA CLASSES', [FOR ENGG. - DIPLOMA & DEGREE] [[ 3 ]]5/18
[] Explain effect on breakeven point while increasing the fixed cost.
[] Prove that Qb
= F/b-a as per usual notations.
[Derive an equation for breakeven Point analytically.] [3 & 4]
[] With the help of graphical method or analytical method, find the
breakeven point where fixed cost is 10,000 and variable cost per unit
is 50 and selling price per unit is 120. The production rate of the
company is 200 units.
[] The labour cost is 20/product & material cost is 30/product of a
bearing manufacturing company. Fixed cost is 20,000 and variable cost
is 75. Selling price of the bearing is 85/unit. Find how many bearing
should be manufactured in order to achieve No profit No loss condition.
[] The fixed cost of an industry is 75,000, the variable cost of each
product is 700. If the break even number is 750, find the selling price
of each product. Find out profit, if industry produces 1200 products.
[] The total sales of an industry is 2,50,000. The fixed cost of the industry
is 60,000 and variable cost is 1,25,000. Find the breakeven point for
the industry.
[] The fixed cost of an industry is 50,000 and its production capacity is
1000 units per month, if each product is sold at 600, variable cost per
product is 350, find breakeven number.
[4 Marks]
[] Derive the equation for Economic Batch Quantity.
[] What is ‘margin of safety’ in breakeven analysis ?
[] Define following terms. (i) Breakeven point, (ii) Profit–volume ratio, (iii)
Fixed cost, (4) Variable cost.
[] Discuss effect of various parameters on the breakeven point.
[] Find out the Break-even point analytically(mathematically) from the
following data: (i) Total Sales = 70,000, (ii) Variable cost = 49,00,000,
(iii) Fixed cost = 12,00,000, (iv) No. of components = 35,000.
[] Fixed cost in a factory is 10,000 per year, the variable costs are 2.00
per unit and the selling price is 4.00 per unit, Calculate breakeven point.
[] Fixed cost of a firm is estimated as 5.00 lacs. The firm is selling a
product manufactured by it at a rate of 50 per item. The variable cost/
unit are estimated at 25. Determine (i) breakeven point in units, (ii)
breakeven point in rupees.
[7 Marks]
[] Explain the effect of various parameters on break even point
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Unit - III : Cost estimation of welding
[2 Marks]
[] List the cost elements of Gas Cutting.
[] List the elements of cost in Gas welding.
[] State the factors affecting arc welding cost.
[List factors which are affecting welding cost.]
[] List three welding consumables.
[3 Marks]

4. 'PARSHVA CLASSES', [FOR ENGG. - DIPLOMA & DEGREE] [[ 4 ]]5/18
[] List the different cost elements of Arc Welding and explain any one of
them. [List the elements of cost in arc welding.]
[] Write the any six factors affecting Arc Welding.
[Write down factors affecting arc welding cost.]
[] Explain various elements of cost in case of Gas welding.
[] Write down the different welding techniques in gas welding.
[] Explain the procedure for estimation of material cost in case of Gas welding.
[] An open tank of size 50 x 50 x 50 cm is to be prepared whose welding
length comes to be 3.976 meter. Estimate the total labour cost and
material cost. (Welding is to be done from inner side only). Use the data
given below. (i) Electrode Consumption = 0.6 m/m weld, (ii) Fatigue
Allowance = 5 %, (iii) Electrode wastage = 20 % (iv) Labour cost = 5/
hour (v) Electrode cost = 3/meter.
[] A round plate of 1 meter diameter is to be cut from a plate of 20 mm
thickness. If cutting speed is 20 meter/hour and oxygen consumption rate
is 4.2 m3/hour and acetylene consumption rate is 0.37 m3/hour then find
(i) cutting time, (ii) oxygen consumption, (iii) acetylene consumption.
[4 Marks]
[] Discuss the metal joints in brief.
[] Explain cost estimation steps in arc welding.
[] Explain the procedure of cost estimation in Arc welding processes.
[] Explain the cost elements in Gas cutting.
[] Four plates each of 1000 X 500 X 5 mm are to be gas cut from an M.S.plate
of size 2000 X 1000 X 5 mm. Find the cutting cost. Consider (i) O2
consumption = 5 m3/hr, (ii) cutting speed = 12 m/hr, (iii) cost of C2H2 =
100 /m3, (iv) C2H2 consumption = 2 m3/hr, (v) cost of O2 = 30 /m3 and
(vi) labour = 40 /hr.
[] A two meter long M.S. plate has a 10 mm thickness to be weld by a lap joint
with arc welding. Find the welding cost from following data. Welding speed
20 m/hr, labour cost 30/hr, power charges 25/hr, electrode consumption
0.2 kg/m of weld, cost of electrode 100/kg, fatigue allowances 10 %.
[] Two 1 m long M.S. plate of 1 cm thickness are to be welded by a lap
joint with 6 mm electrode. Calculate the cost of welding. Consider current
used = 250 amp., voltage = 30 volts, welding speed = 10 m /hr, electrode
used = 0.1 kg/m of welding, labour charges = 5/hr, power charges =
10/ kWh, cost of electrode = 40/Kg, Efficiency of machine = 60 %.
[] Estimate the time required for making an open tank of size 25 cm x 25 cm
x 25 cm by gas welding, welding is to be done on inner side only. Assuming
fatigue allowance is to be 10 %, welding speed is 12 minute per meter of
welding for 3 mm thick plate.
[7 Marks]
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Unit - IV : Cost estimation of forging and casting
[2 Marks]
[] List any four different forging operations.
[] Explain sprue/scale loss in forging.
[] Define pattern and list different types of pattern allowances.

5. 'PARSHVA CLASSES', [FOR ENGG. - DIPLOMA & DEGREE] [[ 5 ]]5/18
[List the four pattern allowances.]
[State pattern allowances.]
[] State different types of sheet metal (forging) operations.
[] Explain the flash loss in forging.
[] Define forging and list the types of forging.
[] Explain any two forging operations.
[] Explain shrinkage allowance for pattern making.
[3 Marks]
[] Define the terms with respect to forging (i) shear loss, (ii) tong loss, (iii)
sprue loss.
[] Define (i) shape weight, (ii) net weight, (iii) gross weight.
[] Describe the method of finding direct material cost in foundry.
[Write the procedure for finding direct material cost in foundry.]
[] Explain cost estimation in foundry.
[] Explain various forging operations.
[] Describe the cost elements of foundry process.
[] Explain estimation of flash loss and sprue loss in forging.
[] List the various types of forging losses and explain any one.
[] Explain various pattern allowances. [Write short note on pattern
allowances.][Explain any two pattern allowances.] [3 or 4]
[] Explain how cost of a forged component is estimated.
[] Explain any two types of forging in details.
[4 Marks]
[] State the different forging operations and explain any two of them.
[List various forging operations and explain any one in detail.]
[] Write the short note on pattern cost estimation.
[] Define Net Weight, Shape Weight, Gross Weight, Tong loss.
[] Write a short note on different types of weight in forging.
[] Giving the different pattern allowances explain any two of them.
[] A bar having square section having 4 cm side and 30 cm length is to be
converted to a hexagonal section bar whose sides are of 2 cm respectively.
Find the length of hexagonal bar. Assume scale loss to be 7%.
[] A square bar of 2 cm side and 25 cm length is to be converted by hand
forging in to a bar of hexagonal section having each sides = 1 cm, calculate
the length of hexagonal bar produced. Consider scale loss to be 7% of
total volume.
[] A square bar of 5 mm side and 40 cm length is to be converted by hand
forging into a bar of hexagonal section having each side equal to 3 mm.
Calculate the length of hexagonal bar produced. 05
[] A square bar of 25 mm sides is to be produced from a round bar of 25
mm diameter and 500 mm length. Considering only 5% scale loss, calculate
the length of square bar produced.
[] A 20 mm diameter and 100 mm length bar stock is to be converted to be
converted to a square section bar of 20 mm sides by drop forging. Find
the length of the bar assuming the scale loss to be 7%.
[] A round bar of 25 mm diameter and 500 mm length is being converted in
to a square bar of 25 mm sides by forging. Considering 5% scale loss only
Estimate the length of square bar formed.
[] Determine the numbers of rivets can be produced from 4.5 Kg of M.S.,

6. 'PARSHVA CLASSES', [FOR ENGG. - DIPLOMA & DEGREE] [[ 6 ]]5/18
density of M.S is 7.8 gm/cc, dimensions of rivets : shank dia 2.45 cm,
length of shank 3.5 cm. There are two semi spherical head at both end of
shank dia 40 mm. [5]
[7 Marks]
[] 240 M.S. pins of 6 cm diameter and 12 cm length are to be produced by
drop forging from 9 cm diameter bar stock. The cost of bar stock is 180/
meter. Estimate the material cost of pins. Assume all necessary losses.
[] Determine total cost of 400 C.I. pulleys of 1000 cm3 volume. Consider
(i) pattern cost = 700, (ii) Cost of C.I. = 20/kg, (iii) Wages to the
moulder = 60/day, (iv) No.of moulds prepared = 25/day/moulder, (v)
Process scrap = 10 % of net weight, (vi) cost of process scrap = 4/
kg, (vii) melting charges = 20% of material cost, (viii) overhead charges
= 25% of material cost (ix) density of C.I. = 7.8 gm/c.c. Also find the
rate of casting per Kg.
[] Calculate the cost of C. I. pulley of 1200 cm3 using material cost = 10 per
kg, wages paid to the worker = 50 per day, density of C.I. = 8 gm per
cm3, overhead charges = 20% of material cost, melting charges = 20% of
material cost, number of mould prepared = 25 /day / molder.
[] Find the cost of C. I. pulley of 1000 cm3. Take cost of cast iron = 25 /kg,
rate of molder = 150/day, over head charges = 10 % of material cost,
total number of moulds made = 30/day/molder, density of casting = 7.2
gm/cm3, molding charges = 15% of material cost.
[] 100 numbers of rings are to be forged from a soft steel rod of 1 cm
diameter. The ring has internal diameter of 8 cm and its outer diameter
is 10 cm. If the scale loss is 6% and shear loss 2 mm of the length of
rod for each ring, find the total material cost if the rod is available at 3
per meter length.
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Unit - V : Cost estimation of machined part
[2 Marks]
[] Define Approach and Over Travel (Over Run).
[] Define batch overhead time and production overhead time.
[] Define (i) set-up time, (ii) machining time.
[] Define (i) Feed, (ii) Depth of cut, (iii) Batch Preparation Time, (iv) Approach
[3 Marks]
[] Explain the procedure of estimating the cost of machined part.
[] How will you estimate machine time in case of planning operation.state
equation.
[] How will you estimate machine time in case of shaping operation.state
equation. [State the steps of calculating shaping operation time.]
[] Explain how will you estimate machine time in case of shaping and
planning operation.
[] Derive formula for finding machining time for shaping operation.
[] How to calculate turning time in machining shop ?
[] Explain approach and overrun with respect to milling operation.
[] Explain (i) cutting speed, (ii) depth of cut, (iii) over travel(run).
[] Estimate the time required for making 6 holes of 1 cm depth in a cast

7. 'PARSHVA CLASSES', [FOR ENGG. - DIPLOMA & DEGREE] [[ 7 ]]5/18
flange by drilling. Hole diameter is 1.5 cm, cutting speed 20 m/min, and
feed is 0.02 cm/revolution.
[4 Marks]
[] Explain following term. Feed, Approach, Depth of cut, Over travel
[] Find the equation for milling time ‘T’ in face milling, if cutter diameter ‘D’
is more than width ‘W’ of the job.
[] Derive the equation for milling time ‘T’ in plain milling.
[] Define the following terms. (i) Approach, (ii) Overhead travel, (iii) Feed, (iv)
cutting speed.
[] An Aluminium rod of 80 mm length and 50 mm diameter is to be turned
to 40 mm diameter in two cuts. Cutting speed is 20 m/min and feed is
0.10 mm/rev. Find the time required for turning the rod.
[] Estimate the m/c time to turn a M.S. bar of 4 cm diameter down to 3 cm
diameter for a length of 10 cm in single cut. Assume cutting speed 30 m/
min and feed 0.4 mm/rev.
[] A steel rod of 60 mm diameter and 120 mm length is to be reduced to
55mm in one cut by turning. Its length is to be reduced to 100 mm. If
cutting speed is 25 m/min and feed 0.1 mm/revolution, find the time
required to finish the job.
[] A hollow spindle’s diameter should be bored from 20 mm to 25 mm
diameter in single cut upto a length of 100 mm. If cutting speed is 22 m/
min and feed is 0.02 cm/rev., find the time for boring the bar.
[] Estimate the time for a shaping a keyway of 40 cm length, 1 cm width
and 5 cm depth for a machine of cast iron. Assume the data given below.
(i) Cutting speed for shaping = 10 m/min, (ii) Feed = 0.08 cm/stroke,
(iii) Depth of cut = 0.25 cm.
[] The thickness of a C.I. block 10 cm x 3 cm is to be reduced in 2 cuts
from 1.8 cm to 1.3 cm. If cutting speed is 20 m/min and feed 0.2 mm/
stroke and cutting time is 3/5 of total time, then find out shaping time.
[] A slot of 2 cm deep and 10 cm long is to be cut in a M.S. job, using a
milling cutter of 8 cm diameter and rotating at 120 rpm. If milling is to
be done in two cuts and feed is 0.05 cm/rev, find the time required.
[] Determine time required for preparing M.S. bolt M20 x 3 mm by single
point cutting tool with a cutting speed 8 m/min and length of threaded
portion is 40 mm. Consider No.of cuts required for threading is 8.
[] Estimate the time required to drill 4 holes of 1 cm diameter in a plate.
Whole depth is 2 cm, cutting speed is 15 m/min and feed is 0.01 cm/rev.
[] Estimate the time required for cutting 3 mm pitch threads on a mild steel
bar of 2.8 cm dia. and 8 cm long. Assume the cutting speed for threading
as 15 m/min.
[] It is required to produce threads of 2 mm pitch in a hole of 20 mm dia.
and 20 mm depth by tapping. Taking three cuts and cutting speed of 5
m/min for M.S. Estimate the tapping time.
[] Estimate the milling time to prepare a square prism from 90 mm long and
40 mm diameter cylinder. Take feed of 25 mm per minute and set up and
indexing time assume 15 minute.
[7 Marks]
[] A 40 × 8 cm C.I.surface to be faced on a milling machine with a cutter
having 10 cm diameter and 16 teeth. If the cutting speed and feed are 50

8. 'PARSHVA CLASSES', [FOR ENGG. - DIPLOMA & DEGREE] [[ 8 ]]5/18
m/min and 5 cm/min respectively then determine the milling time, RPM of
cutter and and feed per tooth.
[] Estimate the time required to drill 4 holes in C.I.Flange from the following
data. Hole length 20 mm,hole dia 12 mm, cutting speed 15 mm/min and
feed 0.2 mm/rev.
[] Find the time required to drill 6 holes in a casted flange each of 1 cm
depth, if the hole dia is 1.5 cm. Assume cutting speed as 20 m/min and
feed as 0.02 cm/rev.
[] A 15 cm long M.S. bar is to be turned from 4cm dia. In a single cut to 3.8
cm dia. For first 5 cm length and to 3.4 cm for next 10 cm length. If cutting
speed is 45 m/min and feed is 0.02 cm/rev, and required setting and
mounting time of job in three jaw chuck is 45 sec, estimate the total time
required for turning.
[] Estimate the time required to cut 6 threads per cm on a M. S. bar 20 mm
diameter for a length of 10 mm. Take cutting speed is 10 meter per minute
and assume 6 cuts.
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Unit - VI : Estimation of process cost
[2 Marks]
[] List any four cost element of an ice plant.
[3 Marks]
[] List the various cost elements of an ice plant. (Any six)
[] Write the procedure of estimating cost of power produced by diesel
generating set. [Write the procedure of estimating cost of power plant by
diesel generating set.]
[] A thermal power plant is satisfying max. demand of 70 MW. Load factor is
45 %, estimate power cost per unit, if interest and depreciation is 10 %
of capital cost, operating cost is 1.90 per unit and capital invested is
1800/MW.
[] Explain cost estimation per pouch for pouch packaging.
[4 Marks]
[] Explain cost estimation in (any one) (i) Diesel generating set, (ii) ice plant.
[] A thermal power plant produces 80 MW to satisfy maximum demand.
Load factor of plant is 40%. Estimate power cost per unit for power
produced by this plant. Operating cost 1.94/kWh. (Assume capital cost
as Rs.1800 per kW and depreciation is 12%).
[7 Marks]
[] The capacity of thermal power plant is 80 MW. The load factor of the
power plant is 40%. Find the cost of generating power/unit in thermal
power plant.
[] Write down steps for cost estimation for producing power using diesel
generating set.
[] The cost of active wheel washing powder packed in 1 kg pouch is 26.
The plastic material for pouch cost 1 per pouch. An operator is packing
500 pouches in a shift of 8 hours. If operator is paid 150 per 8 hours
shift. Estimate pouch packaging cost assuming interest & depreciation.
Power cost per pouch is 0.15.

9. 'PARSHVA CLASSES', [FOR ENGG. - DIPLOMA & DEGREE] [[ 9 ]]5/18
[] One ammonia refrigerant ice plant produce 160 kW refrigerating effect.
The heat rejection theoretically by evaporator is 1000 KJ/kg. Theoretical
compressor input is 185 KJ/kg. Mechanical efficiency of compressor is 85
%. Actual heat absorption in cold chamber is 80 %. If Power cost per unit
is 10 and labour cost is 2000/day and overhead cost = 5000/day find
out ice production rate per kg. Plant is working for 24 hours.
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Unit - VII : Budgeting and contracting
[2 Marks]
[] List any four types of budget.
[] State six objectives of budget.
[] Explain budgetary control in brief.
[] Define contract and mention its characteristics.
[] Define tendering. List the types of tendering.
[] List different types of tenders.
[] State the conditions of contract.
[] Write merits and demerits of contract.
[List the disadvantages of contracting.]
[] Explain ‘rate contract’.
[] Write down the importance of cost analysis.
[] Define budget and budgetary control.
[3 Marks]
[] Explain tender form and Security bond in brief.
[] Explain various accounting terminology.
[] List Factors to be considerd in the preparation of specification.
[] State six objectives of Budget.
[] List various types of tenders and explain any one.
[] Write a short note on e-tendering.
[] List and explain benefits of budget.
[] Give definition of contract and list various types of contracts.
[] What is tendering ? Explain its types.
[] Explain Labour contract and Piece rate contract.
[4 Marks]
[] List the four types of contract and explain any two.
[] Write short note on security bond.
[] State the types of budget and explain any two in details.
[] Define contract and state the conditions of contract.
[] Explain following term : Security deposit, Deed.
[] List modern tools and techniques of cost reduction. [3 or 4]
[] Explain sales budget.
[] Explain full contract and schedule contract.
[] Write difference between manual tendering and E–tendering.
[7 Marks]

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