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?
What are the advantages of parametric cost estimation mentioned in the text?
What are the advantages of parametric cost estimation mentioned in the text?
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?
Which budgeting procedures for cost management are mentioned in the text?
Which budgeting procedures for cost management are mentioned in the text?
Signup and view all the answers
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?
Signup and view all the answers
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.
Description
Test your knowledge of project management cost estimation and budgeting with this quiz. Assess your understanding of common project costs, different forms of project costs, and various cost estimation techniques. See if you can apply your knowledge to calculate ballpark estimates and definitive estimates for project work.
