Will Cost estimates are the official program position for budgeting, programming, and reporting. The Should Cost estimate is an internal management tool for incentivizing performance to target. Repeat your actions. This is an ongoing activity, not a one-time event.

What is a should cost?

A “should cost” is a projection of the total cost of a given component if efficient manufacturing and distribution practices are followed. A robust estimate will need to account for a plethora of factors including labor, materials, overhead, and profit margin.

What is a should cost review?

(1) Should-cost reviews are a specialized form of cost analysis. ... The objective of should-cost reviews is to promote both short and long-range improvements in the contractor's economy and efficiency in order to reduce the cost of performance of Government contracts.