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This paper describes current re search in the area of low volume product cost estimating. It examines current cost estimating practices and the problems using these for low volume, infrequent products, such as complex electronic systems. The traditional approaches are described in detail and how the cost estimating relationships are ascertained. The approaches used within sectors such as aerospace, construction and injection moulding are discussed and evaluated. Using the findings from the traditional approaches a proposed method for low volume products is introduced. The paper describes research that has started within this area with a number of partners. The hypothesis are presented which will be evaluated over the next period of research through industrial case studies.