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PK0-003 · Question #404

Which of the following cost estimating techniques uses previous, similar projects as a basis of estimating costs for the current project?

The correct answer is D. Analogous estimating. Analogous estimating, also known as top-down estimating, is a cost estimation technique that uses historical data from a previous, similar project as the basis for estimating the cost of the current project. This method is often used when there is limited detailed information ava

Project management concepts

Question

Which of the following cost estimating techniques uses previous, similar projects as a basis of estimating costs for the current project?

Options

  • ATop-down estimating
  • BParametric estimating
  • CBottom-up estimating
  • DAnalogous estimating

How the community answered

(31 responses)
  • B
    3% (1)
  • C
    3% (1)
  • D
    94% (29)

Why each option

Analogous estimating, also known as top-down estimating, is a cost estimation technique that uses historical data from a previous, similar project as the basis for estimating the cost of the current project. This method is often used when there is limited detailed information available.

ATop-down estimating

Top-down estimating is a broad category, and while analogous estimating falls under it, 'Top-down estimating' itself describes the direction of estimation (from overall project down to components) rather than the specific technique of using similar projects.

BParametric estimating

Parametric estimating uses a statistical relationship between historical data and other variables (e.g., cost per line of code, cost per square foot) to calculate an estimate.

CBottom-up estimating

Bottom-up estimating involves estimating the cost of individual work packages or activities and then rolling them up to get a total project cost.

DAnalogous estimatingCorrect

Analogous estimating is a top-down cost estimating technique that uses the actual cost or duration from a previous, similar project as the basis for estimating the cost or duration of the current project. It relies on historical data and expert judgment, especially when detailed information is scarce.

Concept tested: Cost estimating techniques - Analogous

Topics

#Cost estimating techniques#Analogous estimating

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