Which enterprise environmental factors are considered during cost estimating?

Question

Options

• AMarketplace conditions and commercial databases
• BMarketplace conditions and company structure
• CCommercial databases and company structure
• DExisting human resources and market place conditions

• A
  81% (29)
• B
  3% (1)
• C
  11% (4)
• D
  6% (2)

Explanation

Option A is correct because enterprise environmental factors (EEFs) that influence cost estimating include marketplace conditions (e.g., supply/demand, material costs, labor rates) and commercial databases (e.g., published cost estimating data, industry benchmarks). Both are external inputs that a project team cannot control but must account for when building cost estimates.

Why the distractors are wrong:

• B - "Company structure" is an organizational process asset (OPA) or an internal organizational factor, not an enterprise environmental factor in the context of cost estimating inputs.
• C - Same issue: "company structure" doesn't belong here. Commercial databases are correct, but pairing it with company structure makes this wrong.
• D - "Existing human resources" relates to resource planning, not EEFs for cost estimating. While marketplace conditions are valid, the pairing is incorrect.

Memory tip: Think of EEFs as things that come from outside your organization - the market and published data you look up, not internal structures or people you already have. If it sounds like something you'd Google or buy a subscription to access, it's likely an EEF.

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