Estimating Cost Discussion

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Estimating Costs” Please respond to the following:

  • Suppose you were asked to prepare a cost estimate for a project to purchase laptops for all faculty and staff at your college or university. How would you start? How long would it take you to prepare a good estimate? What type of estimate would you prepare, and what approach would you use to develop a cost estimate? Why do you think it’s necessary to understand some of the basic cost terms in project management?

Response is needed for below:

  • I would make a list of items needed and add up their costs. I would look at acquisition cost and I would consider bidding to get a good deal.
  • A good estimate should take no longer than 3-5 days.
  • The cost estimate is the product of the cost estimating process. The cost estimate has a single total value and may have identifiable component values. A problem with a cost overrun can be avoided with a credible, reliable, and accurate cost estimate.
  • Project management will ensure that purpose/vision and goals are maintained. Additionally, you avoid risks and effectively and efficiently use your available resources.

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