Podcast
Questions and Answers
What are the two types of cost estimation mentioned in the text?
What are the two types of cost estimation mentioned in the text?
- Approximate estimates and exact estimates
- Initial estimates and detailed estimates
- Rough estimates and precise estimates
- Ballpark estimates and definitive estimates (correct)
What are the advantages of parametric cost estimation mentioned in the text?
What are the advantages of parametric cost estimation mentioned in the text?
- It allows for the use of historical data to estimate costs (correct)
- It is easier to apply than other cost estimation methods
- It provides precise cost estimates for any project
- It eliminates the need for contingency funds
What are the reasons mentioned in the text for project cost estimation being often done poorly?
What are the reasons mentioned in the text for project cost estimation being often done poorly?
- Inadequate project management software
- Lack of accurate data and expertise (correct)
- Excessive use of contingency funds
- Overreliance on technology in cost estimation
Which budgeting procedures for cost management are mentioned in the text?
Which budgeting procedures for cost management are mentioned in the text?
What does the text mention about the uses of contingency funds for cost estimation?
What does the text mention about the uses of contingency funds for cost estimation?
Flashcards
Types of Cost Estimation
Types of Cost Estimation
Ballpark estimates and definitive estimates are the two types.
Parametric Cost Estimation
Parametric Cost Estimation
Uses historical data to estimate costs effectively.
Poor Cost Estimation Reasons
Poor Cost Estimation Reasons
Key reasons include lack of accurate data and expertise.
Budgeting Procedures
Budgeting Procedures
Signup and view all the flashcards
Contingency Funds Usage
Contingency Funds Usage
Signup and view all the flashcards
Study Notes
Cost Estimation Types
- Two types of cost estimation:
- Analogous cost estimation
- Parametric cost estimation
Advantages of Parametric Cost Estimation
- Faster and less expensive
- Provides a detailed estimate of costs
- Allows for sensitivity analysis
Reasons for Poor Cost Estimation
- Lack of data and historical information
- Limited understanding of the project scope
- Inadequate resources and skills
- Poor communication and stakeholder management
Budgeting Procedures for Cost Management
- Top-down budgeting
- Bottom-up budgeting
- Zero-based budgeting
Contingency Funds for Cost Estimation
- Used to manage risks and uncertainty
- Amount allocated is a percentage of the total project budget
- Helps to mitigate the impact of unplanned expenses
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
