111- Estimate Cost

These flashcards cover key terms and concepts related to cost estimation and management in project planning.

Estimate Costs

The process of developing an approximation of the cost of the resources needed for a project.

Progressive Elaboration

An approach where the project details become more defined and better understood over time, leading to more precise estimates.

Definitive Estimate

A precise estimate range of negative 5% to positive 10%, indicating a high level of accuracy.

Budgeted Estimate

An estimate range of negative 10% to positive 25%, reflecting a moderate level of precision.

Rough Order of Magnitude (ROM) Estimate

A broad estimate with a range of negative 25% to positive 75%, indicating low precision.

Analogous Estimation

A method for obtaining quick estimates based on historical data or similar past projects.

Bottom Up Estimation

A detailed estimation method where costs are accumulated from the smallest work components.

Parametric Estimation

An estimation technique that uses statistical data to calculate costs based on referenced parameters.

Cost of Quality

The total cost of ensuring quality, including training, equipment, and potential failure costs.

Basis of Estimate

The documentation that explains how an estimate was developed, including assumptions, sources of data, and risks involved.