Which of the following is a good condition for bottom-up estimating? A. When the project involves strategic decision making B. When the project is internal and small C. When there is a fixed price contract D. When there is high uncertainty involved in the project E. When there is an unstable scope

Question

Business

Ellen Mercer

12 June, 09:32

Which of the following is a good condition for bottom-up estimating? A. When the project involves strategic decision making B. When the project is internal and small C. When there is a fixed price contract D. When there is high uncertainty involved in the project E. When there is an unstable scope

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Answers (2)

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Jaylynn Clements · Answer 1

The correct option is C, when there is a fixed price contract

Explanation:

Bottom up estimating is a project management cost technique where the workers who are to work on the project make inputs in cost computation of the project.

Since the contract price of the project is fixed, the task left is for the agreed fee to be broken down into different areas of the project in order to determine the high cost and low cost areas in order that the cost attributed to a particular area of the project can be seen to be justified

Snuffles · Answer 2

when there is a fixed price contract

Explanation:

When the price of a project is fixed the bottom-up estimating technique is the best technique because in the bottom-up estimating in project management it requires the proactive effort of every team member involved in the management and project executing process.

In this technique every member of the project is involved in the decisions and every step or course of action involved in the project. i, e every step towards achieving the project involves the idea of every member of the project.