Assignment: Cost Estimating
I. Define the following terms:
1. Forecasting
2. Extrapolate
3. Interpolate
4. Complexity
5. Life Cycle Cost
6. Expert Judgement
7. Learning Curve
8. Work Breakdown Structure (WBS)
9. Data Normalization
II. Explain the purposes for cost estimating.
III. Provide 5 factors that could contribute to an inaccurate estimate. What is a primary reason for project failure?
IV. Compare and contrast the difference between Comparative Costing, Parametric Costing, and Empirical Costing. Which method is considered a "bottom-up" approach and explain why it is considered bottom-up?
V. Explain the purpose of a Gantt Chart?
VI. Explain why it is important to document your assumptions when developing a cost estimate?
VII. Explain why data normalization is required when utilizing data from multiple sources. Name one common method to normalize historical cost data.
VIII. Discuss three cost estimating challenges that you could encounter when developing the cost estimate for the tallest building in the world.
IX. Why would you want to update an estimate?
X. What is the first step in developing a cost estimate?
XI. Cite, in order, the twelve "Cost Estimating" steps. Which of the twelve steps do you think is the most important and why?
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.