You are the business analyst for your organization and are working with Sally, a project manager, for your organization. You and Sally are determining the cost of the labor, materials, equipment, and facilities in order to achieve the different solutions that have been proposed for an identified problem.
What is this process called?
The process of determining the cost of labor, materials, equipment, and facilities required to achieve different solutions proposed for an identified problem is called cost budgeting. Cost budgeting involves estimating the costs associated with implementing the project scope, activities, and deliverables. This process helps in developing the project budget, which allocates resources to various project activities and components.
A. Cost budgeting The process of determining the cost of labor, materials, equipment, and facilities required to achieve different solutions proposed for an identified problem is known as cost budgeting. Cost budgeting involves estimating the costs associated with implementing the project scope, activities, and deliverables. This process helps in developing the project budget, which allocates resources to various project activities and components. Therefore, option A, cost budgeting, is the correct term for this process.
C. Rough order of magnitude cost estimating This type of cost estimation is typically performed early in the project to provide an approximate figure of the costs involved, often when there is limited information available about the project.