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Project Cost Management Question (Source: Scordo)

Posted: Wed Jul 16, 2014 6:14 am
by signor_rk
Q: Breaking down project activities into smaller components in order to obtain a more accurate cost estimate is called:
(A) Work breakdown structure
(B) Analogous estimating
(C) Decomposition
(D) Bottom-up estimating
My selected option was #(C) , but the answer shows # (D). Problem in understanding.
If this question starts like : An estimating method where "Breaking down project activities into smaller components in order to obtain a more accurate cost estimate is called :" , then I would have definitely choosen the option#(D).

Any comment please.

Re: Project Cost Management Question (Source: Scordo)

Posted: Wed Jul 16, 2014 7:54 am
by namita
When I drilled it, I found that you can't name the process of breaking activities for better estimation as bottom up estimation. Why?

Decomposition. A technique used for dividing and subdividing the project scope and project deliverables into smaller, more manageable parts.


Bottom-Up Estimating. A method of estimating project duration or cost by aggregating the estimates of the lower-level components of the work breakdown structure (WBS).


So process of estimation can be called bottom-up estimation but not the process of breaking activities into more estimatable activities.

Re: Project Cost Management Question (Source: Scordo)

Posted: Wed Jul 16, 2014 8:28 am
by sunku65
I got it.
The question talking about activities that already broken down from work packages to obtain accurate cost estimates is called Bottom-up.

The question not talking about breaking down the activities in to further.

Re: Project Cost Management Question (Source: Scordo)

Posted: Wed Jul 16, 2014 12:20 pm
by signor_rk
Thank you all for sharing your views & comments.