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PK0-003 · Question #327

Which of the following is the MAIN difference between bottom up and top down cost estimation?

The correct answer is A. Bottom up leads to a more accurate cost estimate than top down because it is performed by. This question seeks the primary distinction and comparative accuracy between bottom-up and top-down cost estimation approaches in project management.

Project life cycle phases

Question

Which of the following is the MAIN difference between bottom up and top down cost estimation?

Options

  • ABottom up leads to a more accurate cost estimate than top down because it is performed by
  • BTop down leads to a more accurate cost estimate because it is performed by upper management
  • CBottom up leads to a less accurate cost estimate because it is breaks down the task into smaller
  • DBoth top down and bottom up are equally accurate estimation of a project's total cost because

How the community answered

(60 responses)
  • A
    88% (53)
  • B
    2% (1)
  • C
    3% (2)
  • D
    7% (4)

Why each option

This question seeks the primary distinction and comparative accuracy between bottom-up and top-down cost estimation approaches in project management.

ABottom up leads to a more accurate cost estimate than top down because it is performed byCorrect

Bottom-up estimation involves detailing all work packages, estimating their individual costs, and then summing them to get a total project cost, making it generally more accurate because it's based on detailed work breakdown and often estimated by those performing the work. This granular approach provides a more precise and defensible cost figure than high-level estimates.

BTop down leads to a more accurate cost estimate because it is performed by upper management

Top-down estimation, while quicker and often performed by upper management based on historical data, is typically less accurate for detailed project planning due to its high-level nature and lack of granular detail.

CBottom up leads to a less accurate cost estimate because it is breaks down the task into smaller

Bottom-up estimation specifically breaks down tasks into smaller components to achieve greater accuracy, not less, by allowing for more precise cost calculations at a detailed level.

DBoth top down and bottom up are equally accurate estimation of a project's total cost because

Top-down and bottom-up estimates are not equally accurate; bottom-up estimation is generally considered more accurate because it builds from detailed work packages.

Concept tested: Project cost estimation techniques

Topics

#Cost estimation#Bottom-up estimation#Top-down estimation

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