Which cost estimation method do you think is the most accurate? Why?© BrainMass Inc. brainmass.com March 21, 2019, 5:27 pm ad1c9bdddf
Which cost estimation method do you think is the most accurate? Why?
The accurateness of cost estimation process can make or break project success. We should know the strategies that will help us gain control of this key area and ensure future project profitability!
Cost estimation models are mathematical algorithms or parametric equations used to estimate the costs of a product or project.
The evidence on differences in estimation accuracy of different estimation approaches and models suggest that there is no "best approach" and that the relative accuracy of one approach or model in comparison to another depends strongly on the context. This implies that different organizations benefit from different estimation approaches.
One of the greatest challenges for any company is to successfully deliver on all aspects of a project both according to the client's specifications and within the allotted budget. It is often the case that either one aspect or the other can be accomplished, but not necessarily both. When it comes to controlling costs, it is a critical first step to make appropriate estimations at the outset of a project.
Most organizations use multiple methods for estimating projects. My preferred ones are parametric cost models and analogy. In the case of analogy, it is beneficial to consider the similarities between a previous system and the new system being estimated. This also provides an opportunity to explore the feasibility ...
The solution examines what cost estimation method is most accurate.