PK0-003 · Question #234
Which of the following would use the WBS to aid in the creation of the cost estimate?
The correct answer is D. Bottom up. The method that uses the Work Breakdown Structure (WBS) as the foundation for creating a cost estimate by breaking down work packages is bottom-up estimating.
Question
Which of the following would use the WBS to aid in the creation of the cost estimate?
Options
- AAnalogous
- BTop down
- CParametric
- DBottom up
How the community answered
(32 responses)- A3% (1)
- B6% (2)
- C3% (1)
- D88% (28)
Why each option
The method that uses the Work Breakdown Structure (WBS) as the foundation for creating a cost estimate by breaking down work packages is bottom-up estimating.
Analogous estimating uses historical data from similar projects to estimate costs, without detailed reliance on the current project's WBS.
Top-down estimating involves determining a total project cost first and then allocating it to various components, rather than building from detailed WBS elements.
Parametric estimating uses a statistical relationship between historical data and other variables to calculate costs, often using unit rates and project parameters, not the detailed WBS breakdown.
Bottom-up estimating involves aggregating cost estimates for individual work packages or activities from the Work Breakdown Structure (WBS) to arrive at a total project cost. This method leverages the detailed WBS to ensure comprehensive and precise cost calculations for all project components.
Concept tested: Project cost estimation methods
Source: https://learn.microsoft.com/en-us/training/modules/project-management-introduction-tools/4-cost-management
Topics
Community Discussion
No community discussion yet for this question.