Activity cost estimates
“Activity Cost Estimates” is an input for the process “Estimate Activity Resources”.
“Activity Cost Estimates” is an output for the process “Estimate costs”.
Activity cost estimates are quantitative assessments of the probable costs required to complete project work. Cost estimates can be presented in summary form or in detail. Costs are estimated for all resources that are applied to the activity cost estimate. This includes, but is not limited to, direct labor, materials, equipment, services, facilities, information technology, and special categories such as cost of financing (including interest charges), an inflation allowance, exchange rates, or a cost contingency reserve. Indirect costs, if they are included in the project estimate, can be included at the activity level or at higher levels.
“Activity Cost Estimates” is an input for the process “Determine budget”.
Cost estimates for each activity within a work package are aggregated to obtain a cost estimate for each work package.
“Activity Cost Estimates” is an input for the process “Identify risks”.
Activity cost estimate reviews are useful in identifying risks as they provide a quantitative assessment of the likely cost to complete scheduled activities and ideally are expressed as a range, with the width of the range indicating the degree(s) of risk. The review may result in projections indicating the estimate is either sufficient or insufficient to complete the activity (i.e., pose a risk to the project).
“Activity Cost Estimates” is an input for the process “Plan Procurement management”.
Cost estimates developed by the procuring activity are used to evaluate the reasonableness of the bids or proposals received from potential sellers.
This definition was found in the PMBOK V5
Go back to the Glossary or to the Mapping