6.1.2 Knowledge check (with solutions)
Estimate package costs.
Overview
This learning module (Lesson 1 of Unit 6) is part of a course called Project Management Fundamentals and may either be completed individually as a stand-alone topic, or part of a trio of learning modules on cost management, or as part of the course.
Learning outcomes.
Cost estimation lays the groundwork for a budget that will provide adequate funding to complete a project on time and according to requirements and standards.
Upon successful completion of this module, you'll be able to:
- Describe cost estimating techniques.
- Define elements of cost.
- Understand importance of cost estimation.
What is cost estimation? | note taker
Download this handout for note taking.
How do I estimate costs? | 9 minute read
Read this article about cost estimation techniques by AIPM (2022).
It should echo back to what you learned in the module on Estimate activity durations.
What are some other ways to estimate costs? | 12 minute watch
Test your knowledge.
- Which of the following are the two main tyes of project cost estimation?
- Rough order of magnitude and definitive estimates
- Rough order of magnitude and ordinal estimates
- Ordinal estimates and definitive estimates
- Monetary and non-monetary
- Which of the following is NOT one of the common cost estimation techniques?
- Analogous
- Parametric
- Expert judgment
- 3-point
- Bottom-up
- Synthetic
- T/F: Three-point estimates require estimation of any three points (e.g., 25%, 50%, and 75%).
- True
- False