16 Questions
What is the purpose of cost estimation in project management?
To establish the baseline of the predicted project cost at different stages of development.
Which method in estimating involves a straightforward assessment made by an estimator or performer familiar with the work being estimated?
Direct estimating
What is the primary basis for an estimate in project management?
Control of costs
In cost estimating, what are the basic assumptions for making an estimate?
There is some clarity in the project objectives
What does direct estimating involve?
Observation & study of the tasks to be performed
What function does cost estimating serve in project management?
To predict costs and determine the budget, bid, or contract price.
Which method of estimation involves collecting and organizing historical information through mathematical techniques?
Statistical and parametric estimating
What does CER stand for in the context of estimation?
Cost Estimating Relationships
What is the widely used type of estimating relationship according to the given text?
Linear
What is the advantage of using firm quotes as a method of estimation?
It offers a choice from multiple sources
What are the three categories of information necessary for the reliability of any estimate, according to the text?
Project Requirements, Resources, Prices
What is necessary for the betterment of an estimate according to the text?
The identification of project scope of work
What impacts costs related to projects based on rules and liabilities coverage demanded by the project?
Appreciation of contract documents
Which category of information may be limited to the date when previous projects were implemented?
Information about prices
What is an important factor for good estimates according to the text?
Understanding limitation of information vis-à-vis rough or detailed estimates
What method involves comparison with a similar task/s (past or present) for estimation?
Estimation by analogy
Test your knowledge about cost estimation in project management with this quiz. Learn about the importance of cost estimation, its function, and its role in determining project budgets, bids, and contract prices.
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