Project Management: Tools and Techniques for Cost Estimation and Cost Management

Running head: PROJECT MANAGEMENT
BSBPMG514
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
Assessment 2..............................................................................................................................2
Answer to question number 1................................................................................................2
Answer to question number 2................................................................................................2
Answer to question number 3................................................................................................3
Answer to question number 4................................................................................................3
Answer to question number 5................................................................................................4
Assessment 3..............................................................................................................................5
Answer to question number 1................................................................................................5
Answer to question number 2................................................................................................6
Answer to question number 3................................................................................................7
Answer to question number 4................................................................................................9
Answer to question number 5..............................................................................................10
Answer to question number 6..............................................................................................12
Answer to question number 7..............................................................................................14
Answer to question number 8..............................................................................................15
Answer to question number 9..............................................................................................16
Answer to question number 10............................................................................................16
Answer to question number 11............................................................................................17
References................................................................................................................................18

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PROJECT MANAGEMENT
Assessment 2
Answer to question number 1
The examples of budgeting process tools as well as techniques are generally listed
below:
Expert Judgement: Expert judgement generally utilizes the knowledge as well as
experts for estimating the cost of the project.
Analogous estimation: It mainly utilizes historical data as well as information from
same types of project for estimating the project cost (Kerzner & Kerzner, 2017).
Parametric estimation: Parametric estimation utilizes statistical modelling for
developing the cost estimation.
Bottom up estimation: Bottom up estimation utilizes the individual work packages
that are generally summarized for determining the overall cost estimation of the entire project
(Fleming & Koppelman, 2016).
Three-point estimation: Three-point estimation utilizes the most likely, optimistic as
well as pessimistic. It is found that by utilizing this specific method, the cost of the project is
generally calculated.
Project management estimation software: It generally includes simulation
applications, cost estimating software applications, as well as different types of statistical
software tools.
Answer to question number 2
It is found that in the past, cost estimation tools and techniques are generally utilized
for estimating project costs. The tool and technique that are used for cost estimation mainly
include Microsoft project management software. It is found that with the help of MS project

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PROJECT MANAGEMENT
software, the budget that is generally required for executing each of the activities of the
project are estimated so that the project work can be executed successfully..
Answer to question number 3
The tools and methods that are mainly used for costing as well as cost analysis are
generally listed below:
Cost analysis software: Cost analysis software is mainly used for costing as well as
for analyzing the cost of the project (Mir & Pinnington, 2014).
Spreadsheet: It is found that by using spreadsheet the cost that is associated with the
project are identified as well as analyzed by allocating direct as well as indirect costs.
Answer to question number 4
The budget for a project will be developed by following the steps that are generally
elaborated below:
Identifying the project needs: The needs as well as requirements of the project must
be properly identified so that we can estimate the project requirements (Svejvig & Andersen,
2015).
Analyzing the market cost: The market price of the resources which are required for
the work of the project must be successfully analyzed so that proper idea about the budget of
the project can be gained (Kerzner, 2017).
Allocating materials as well as resources: It is quite necessary to allocate material as
well as resources within the project activities such that work of the project can be executed on
time.