How do industries make cost estimates on their respective products?

Question

I want to know that how different industries estimate cost of their products? What kind of analytical tools they use in terms of calculating their product cost? I have been looking for cost estimating curve for different industries; However, it seems that there isn't any information available on the internet or may be I am not getting hold of the right information. Please share your information regarding this topic.

Answer 1

Most of the time it is a guess. They calculate material cost and use a set amount for labor. They guess at how long it will take to manufacture. They total it up and add 10%.