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REPUBLIC OF THE PHILIPPINES QUEZON CITY GOVERNMENT BIDS AND AWARDS COMMITTEE GOODS AND SERVICESPHILIPPINE BIDDING DOCUMENTS (As Harmonized with Development Partners)SANITATION AND DISINFECTION OPERATIONS

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How to fill out cost derivation

01

Gather all necessary data such as materials cost, labor cost, overhead cost, etc.

02

Calculate total cost, including direct and indirect costs.

03

Determine the cost allocation method to allocate overhead costs.

04

Allocate overhead costs to each unit based on the chosen method.

05

Calculate the cost per unit by dividing total cost by the number of units produced.

Who needs cost derivation?

01

Business owners and managers who want to analyze and understand the total cost of production.

02

Accountants and financial analysts who need accurate cost information for budgeting and decision-making.

03

Manufacturing companies looking to optimize their cost structure and pricing strategies.

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What is cost derivation?

Cost derivation refers to the process of calculating and documenting the costs associated with a project, product, or service. It involves breaking down costs into various components to understand their origin and allocation.

Who is required to file cost derivation?

Typically, businesses, organizations, and individuals that are involved in projects or activities requiring detailed cost analysis are required to file cost derivation.

How to fill out cost derivation?

To fill out cost derivation, one should gather all relevant cost data, categorize the costs, allocate appropriate costs to specific activities, and complete the necessary forms or reports with accurate figures.

What is the purpose of cost derivation?

The purpose of cost derivation is to provide transparency in financial reporting, assist in budgeting, and help in making informed decisions by understanding the underlying costs of projects or services.

What information must be reported on cost derivation?

Information reported on cost derivation typically includes the itemized costs, cost categories, allocation methods, supporting documentation, and any assumptions made during the calculation.

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