Cost Estimate Notes: Definitions & Explanations PDF | Download eBooks
Study Cost Estimate lecture notes PDF with project management definitions and explanation to study What is Cost Estimate?. Study cost estimate explanation with project management terms to review project management course for online MBA programs.
Cost Estimate Definition:
A cost estimate is a quantitative assessment of the likely costs for resources required to complete the activity.
A Guide to the Project Management Body of Knowledge by Project Management Institute
Cost Estimate Notes:
A specific cost is associated with each and every activity of the project. These costs must be estimated to develop an estimated budget of the overall project. The costs are basically related to the resources that are to be used to perform the activity. The cost of an activity is estimated based on the data and information available at that time, however, these can be changed later in the project. Cost estimates are made to identify and consider the cost of starting and completing the project on time. Usually, the cost estimates are the measure of a specific currency but sometimes different measures can be used that can include working hours or days. This results in easy comparisons as the costs can be affected by inflation.
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