Activity Cost Estimates and Basis of Estimates

activity cost estimates

The outputs of the Estimate Costs Process are Activity Cost Estimates and Basis of Estimates. Ofcourse to reach to the outputs, you have to make use of the inputs and all those tools and techniques that we have already discussed.

In case you have forgotten where does the Estimate Costs process lies,

estimate costs process in the pg ka mapping cost management knowledge area - Activity Cost Estimates and Basis of Estimates

Activity Cost Estimates

As the name goes, this is an estimate of cost for every project activity. Note that this cost estimate also takes into account the resource rates and the estimated duration of the activities from the Estimate Activity Durations process

Basis of Estimates

May also be referred in day-to-day project management language as BOE. Do you remember WBS? If yes, hopefully you remember WBS Dictionary as well. Also, from the Define Activities Process, you may recall Activity List and Activity Attributes.

Just like the WBS Dictionary provides additional supporting details of the WBS and Activity Attributes does the honors for Activity List, Basis of Estimates also provides supporting details for Activity Cost Estimates. This is where you will list out the resource rates and also an explanation of how these Activity Cost Estimates were derived

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