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Analogous estimating is a top-down estimation technique for estimating the cost, resources and durations of projects (according to PMBOK, 6 th edition, ch. b. b. This preview shows page 33 - 36 out of 48 pages. It's a simple, yet methodical, way of organizing and understanding your project scope in smaller, manageable components. Found inside Page 62True. Bob costs us the equivalent of $66.67/ hour ($40 / 60%). Bottom-up estimates can be used in situations where information on the project remains Found inside cost estimates can be combined with bottom-up estimates following the This can translate to a reasonably accurate estimate at the lower level. Less reliable duration & costs estimates. Found inside Page 53Now between Top-down and Bottom-up, both these approaches use the WBS to come up with the Bottom-up estimates are more accurate compared with Top-down. d. can be used to estimate the projected cost of completing the project. Gets the Most Out of a Team's Talents and Dedication One advantage is that bottom up management can retain talent, keep morale high and get project buy in, since it gives lower-level employees a voice. Typically an estimate will be presented before a sale has finished, or before any money is due. The process of forecasting or approximating the time and cost of completing project deliverable is called, What is the relationship between organizational culture and estimating, Cultural norms affect the accuracy of estimates, Which of the following methods is NOT considered a top-down approach to estimating project time and cost, Forecasting the time and cost of developing a customized software program by looking at the number of inputs, outputs, inquiries, files, and interfaces. d. They are most accurate when they involve large, extensive work items. Rough order of magnitude is good enough. B. The process of controlling costs primarily involves: a. managing changes to the project budget. Sometimes there is a tendency to refer to bottom-up budgeting as an expanded form of top-down budgeting. In project management . Definitive estimates: Drafted when a project's scope and constituent tasks are almost fully defined, a definitive estimate makes full use of deterministic estimating techniques, such as bottom-up estimating. Found inside Page 145This is particularly important when a large number of such units will be used, because of the obvious budget impact.bottom-up estimates These are detailed c. They are based on the actual cost of a previous, similar project. Before the year began, the following static budget was developed for the estimated sales of 50, 000. In bottom-up estimating you provide detailed estimates for each individual task making up your deliverables. Scenario V - Bottom-up ETC. When summarized, these individual estimates provide a full picture of how much time the project will possibly consume on the whole. Along with the Statement of Work (SOW), the IGCE is an important document that has direct influence on how long it may take to execute an acquisition and, ultimately, the estimated cost of performance. A(n) __________ is something that is a valuable but burdensome possession. Financial forecasting is a crucial tool for any business because it enables you to anticipate profits.The ability to accurately predict fluctuations in revenue allows you to overcome cash flow issues and budget accordingly. As duration estimations relate to activities, the bottom-up estimation technique is implicitly the main approach for activity durations. The forcing mode is one in which the project manager deemphasizes or avoids areas of differences and. They are time-intensive and expensive to develop. Which of the following is true of bottom up estimates Answer a They are time, 25 out of 30 people found this document helpful. Bottom-Up Estimate for John's Move. The bottom-up approach (sometimes also named a self-imposed or participative budget) begins at the lowest level of the company. Using the information above, what size sample would be necessary if we wanted to estimate the true proportion to within 0.08 using 95% confidence? Course Hero is not sponsored or endorsed by any college or university. The recommended scenario for the most reliable estimates is to begin with top-down estimating, then create a work breakdown structure and carry out bottom-up estimating. Answer B is incorrect because there is no technique called decomposed estimating. This is the the least work but sacrifices the ability to find and fix problems. Quantity is 2,000 square feet - plus or minus 0%. Once approved, the estimates are then sent back to the finance department who will allocate resources to the various departments. Top-Down Estimates: Feasible for overview estimates. It creates a more accurate estimate. Which of the following is an input of the process of controlling costs? Tracking. Bottom-up estimating is a technique that involves estimations on a granular level for parts of a project. Using a risk-free rate of 5.5%, a market risk premium of 12.1%, and the bottom-up beta of 0.917, the cost of equity for CHS is estimated to be 16.6%. Found inside Page 281These high - level judgements are then handed down to the next layer of Bottom - up estimates should be , and usually are , more accurate in the the cost will be equal to or less than a certain value. 1. usually tied directly to the WBS and a work package. Q. Which of the following is true of analogous estimates? Bottom-Up Estimating. B. _____ are those costs that are difficult to measure in monetary terms. Supervisors tell departments their budget amount and the departments are free to work within those amounts. . 1. C. Analogous estimating is less accurate than other estimating methods.. A is incorrect, as regression analysis is a type of parametric modeling.B is incorrect, as bottom-up estimating starts with zero and adds up the project costs.D is incorrect, as analogous estimating is not more accurate.. 2. B. Departments budget their needs however they see fit. Table C-1 presents the strengths and weaknesses of each method and identifies some of the associated applications. For example, design flaws being revealed after the fact, extreme weather conditions, and accidents occurring are good examples of, When work package estimates are made by individuals most knowledgeable about the work being performed and these estimates are then "rolled up" to find estimated costs for major deliverable and the project itself, ____ estimating is being used, The estimating factor that considers the tendency to overestimate project time and cost in order to improve the likelihood of meeting the estimates is known as the ____ factor, The estimating factor that considers the prevailing belief in some firms that detailed estimating takes too much time and is not worth the effort is an example of the ____ factor, The preferred method for situations involving strategic decision making, projects with a high degree of uncertainty, and projects with an unstable scope is the ____ approach to estimating project time and costs, Costs that are not directly related to a specific project, such as advertising, accounting, and senior management's salary, are classified as ____ costs. D. It's less expensive to do than other methods. They are most accurate when they involve large, extensive work items. A bottom-up estimate is based on the cost requirements for each lower work package and then is combined to estimate cost of the entire component of work. a. D) It is not a useful methodology in the early project . The accuracy of parametric estimate is average of the accuracy levels of the unit cost and the number of units. C. It's more expensive to do than other methods. It is an estimate of the value of the physical work actually completed. B. Influencing time, resources and cost estimates quality. In project procurement management, which of the following is an output of the executing process? It's the opposite of top-down budgeting or forecasting, which begins with a total amount and distributes it among categories. 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