Introduction to project management/IPM103/Budget/Methods
This section covers the various ways to estimate costs for a project.
- Analogous Estimate - an estimate that is based on other project estimates
- Parametric Estimate - using average costs per unit, based on costs from other projects
- Bottom-Up Estimate - identifying the cost of each item in each activity of the project
- Activity-Based Estimate - reorganising estimates from multiple vendors so that those costs associated with a particular activity are grouped by adding the activity code to the detailed estimate.