What is the difference between fixed cost rates and budgeted cost rates?
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I’m a complete novice when it comes to budgeting. Recently, due to work-related reasons, I’ve been studying the quota systems used by Sinopec, and I found that there are three types of quotas: estimated quota, budget quota, and cost quota. I’ve been in touch with budget estimates before, so there’s no need to explain. I know a bit about budgets as well, but what exactly is this cost quota? I took a look at the official definition, but unfortunately I really couldn’t figure out what it meant. I would like to ask professionals: what is the difference between fixed cost rates and budgeted cost rates? Can I calculate the costs by using fixed expense rates? I would be very grateful if an electronic version in fixed format could be uploaded!
They serve different purposes. 1. Fixed cost estimates are generally used in project management; for example, if a client wants to establish a chemical plant, they use such estimates to determine how much money will be required. 2. As the name implies, budget quotas are more detailed and are used for construction budgets, setting control prices, and bidding.
Budget quotas are used for Party A, while cost quotas are used for Party B. Sinopec has a rather peculiar structure: it has its own Party A, and each company also has its own Party B; there are separate Sinopec construction companies as well