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Topics: Cost Management
Can someone please help me in understanding below question ?
Which of the following statements is accurate regarding the Estimate Costs process?
A. Cancelling your project
B. Understating the cost estimate
C. Overstating the cost estimate
D. Tracking the funds
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Aditi -

This is a very oddly worded question - my suspicion is that it does not come from a particularly good quality practice exam source.

A is a possible outcome once you have gone through Determine Budget if it is not possible to deliver minimal scope within the available funding, so that is not part of Estimate Costs.

B & C are risks related to estimating costs.

D is a monitoring & controlling activity related to "Control Costs" ensuring that funding is provided when planned and tracking the use of that funding.

So I'm not happy with any of the provided answers...

Kiron
I agree with Kiron, this is again a poorly drafted question.

But one possible answer which i can relate is option C.

This is considering the fact that most of the estimate done, will consider for some buffer (mostly as a cover for inaccuracy in estimates) and if we include contingency buffer as well the cost estimate may swell much higher than actually required.
This may make the project less attractive.

But this is again just a close possibility, but your question ask for "Which of the following statements is 'accurate'... "

Non of the options actually fit for "accurate"

May be reframing the question will make it better.

@ Kiron: your opinion?
...
1 reply by Kiron Bondale
May 24, 2020 10:32 AM
Kiron Bondale
...
Two opinions:

1. If this is a certification exam practice question, it belongs in the Certification Central group.

2. I would not be relying on whatever online site had provided this question given its poor wording - this is why I always say that with certification exam practice questions you get what you pay for...

Kiron
This is a very odd question, however, let me take a dig at it.

Understating the cost estimate, or Overstating is just a bad practice.

Tracking funds would land in Monitoring and Controlling piece. The process being talked about here is "Estimate Costs" which is part of "Planning" process group, not M&C.

Still, this seems to be a very abrupt type of question.
May 23, 2020 1:19 PM
Replying to Tarun Nair
...
I agree with Kiron, this is again a poorly drafted question.

But one possible answer which i can relate is option C.

This is considering the fact that most of the estimate done, will consider for some buffer (mostly as a cover for inaccuracy in estimates) and if we include contingency buffer as well the cost estimate may swell much higher than actually required.
This may make the project less attractive.

But this is again just a close possibility, but your question ask for "Which of the following statements is 'accurate'... "

Non of the options actually fit for "accurate"

May be reframing the question will make it better.

@ Kiron: your opinion?
Two opinions:

1. If this is a certification exam practice question, it belongs in the Certification Central group.

2. I would not be relying on whatever online site had provided this question given its poor wording - this is why I always say that with certification exam practice questions you get what you pay for...

Kiron
I am in full agreement with Kiron’s feedback. The answers don’t make sense to me.

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