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Asked by: Malaquias Bruhn
personal finance financial planningWhich type of cost estimating is the preferred most accurate method?
Bottom-up Estimating
This is also called the“definitivetechnique.” This is the mostaccurate but themost time-consuming and costlytechnique. Here, youwill calculate the cost of everysingle activity with thehighest level of detail and roll them up tocalculate the totalproject cost.
Also asked, what cost estimating technique?
Analogous estimation technique uses theparameterssuch as scope, budget, duration, size, weight andcomplexity ofprevious projects having similar nature of works. Itmeasures thecurrent project on that basis and does theestimation. Thetechnique is less costly andlesstime-consuming.
- Factor estimating.
- Parametric estimating.
- Equipment factored estimating.
- Lang method.
- Hand method.
- Detailed estimating.
Accordingly, what are the methods of estimation?
5 Successful Methods of Project Estimation
- Expert judgment. This is probably the most common way peoplegeta project estimation.
- Comparative or analogous estimation. If your current projectissimilar to past ones, take the data from previous workandextrapolate it to provide your estimates for the new job.
- Top-down.
- Bottom-up.
- Parametric model estimating.
In bottom-up estimating youprovidedetailed estimates for each individual task makingupyour deliverables. Bottom-up estimating ismoreaccurate, but requires that the project be well definedbeforecommencement of estimating.