ABSTRACT
Estimating costs requires the careful consideration of project resources – the people, materials, and equipment that are needed to successfully complete the project. It will involve choices and trade-offs and requires the complete project definition. There are additional costs and cost categories that should be considered, especially when making definitive estimates. For instance, there are costs incurred during the end of the implementation and the beginning of revenue-producing operations. By manipulating the data using present-day costs of money, for instance, and depending on how closely related the tasks are, the cost estimates could be extremely accurate using analogous estimating. The most accurate and the most time-consuming, and therefore the most expensive, cost estimating technique is bottom-up cost estimating. It uses the work breakdown structure as a basis to estimate costs. The most accurate and the most time-consuming, and therefore the most expensive, cost estimating technique is bottom-up cost estimating.
