Estimating Costs
Now that you’ve developed the project schedule and documented the project resource requirements, you’re ready to begin estimating the cost to complete the work of the project, determine the project budget, and estimate the total cost of the project.
You can use a number of techniques to determine cost estimates. I’ll cover four in this chapter, including analogous (also known as top-down), parametric, bottom-up, and three-point estimates. I’ll also provide some tips to help you work through the estimating process. Remember that these estimating techniques can be used for estimating activity durations as well as costs.
Cost-Estimating Techniques
You can use several...