6 Cost Estimating Relationships

DOI: 10.1201/9781003196174-6

There are formal procedures for estimating various types of system costs; these are known as cost estimating relationships (CERs). This chapter provides an overview and examples of CERs. These relationships provide answers for the cost analyst using cost-effectiveness methods. Thus, the body of knowledge represented by CERs is invaluable with respect to the overall topic of this book.

Some top-level CERs are presented in following table from an earlier book from this author [1]:

TYPE OF EQUIPMENT

COST ESTIMATING RELATIONSHIP (CER)(DOLLARS)

Analog LOS Radio Equipment

6578 exp (.0001(3.94N + 208F))

where N = Number of voice grade channels, and F = frequency in Ghz

Parabolic ...

Get Cost-Effectiveness Analysis now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.