You are responsible for preparing a cost estimate for a large World Bank project. You decide to prepare a bottom-up estimate because your estimate needs to be as accurate as possible. Your first step is to______________
A. Consult with subject matter experts and use their suggestions as the basis for your estimate
B. Use the cost estimate from a previous project to help you prepare this estimate
C. Locate a computerized tool to assist in the process
D. Identify and estimate the cost for each work package or activity
Answer:D
You are responsible for preparing a cost estimate for a large World Bank project. You decide to prepare a bottom-up estimate because your estimate needs to be as accurate as possible. Your first step is to______________
A. Consult with subject matter experts and use their suggestions as the basis for your estimate B. Use the cost estimate from a previous project to help you prepare this estimate C. Locate a computerized tool to assist in the process D. Identify and estimate the cost for each work package or activity
Explanation: Bottom-up estimating is derived by first estimating the cost of the project's elemental tasks at the lower levels of the WBS or for an activity and then aggregating those estimates at successively higher levels of the WBS for subsequent reporting and tracking purposes. [Planning] [email protected], [email protected] Guide, 2013, 205