4. Give examples of when you would prepare rough order of magnitude (ROM), budgetary, and definitive cost estimates for an IT project. Give an example of how you would use each of the following techniques for creating a cost estimate: analogous, parametric, and bottom-up. ROM estimates are very early in the project life or even before the project. They are done to help selection decisions, but they are typically inaccurate. Budgetary estimates are still relatively early but follow ROM estimates. These tend to put actual dollars in the budget for the project costs. Then there are definitive costs which are normally done later in the project. These are much more precise estimates of actual cost for the projects. Analogous is also called a top-down estimate. It uses the cost of a previous project and estimates what the cost of the current project would be. Parametric estimates user
project parameters in a mathematical model to estimate project cost. Bottom-up estimates involve estimating the costs of individual items in the project and then adding all of those costs together to get the total estimated cost of the project. 5. Explain what happens during the process to determine the project budget. During the process of determining the project budget you have to allocate the project cost estimates to individual material resources or work items over time. These are based on the items in the WBS for the project.
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- Summer '17