Exam CBAP topic 1 question 107 discussion

• Rough Order of Magnitude (ROM): a high-level estimate, generally based on limited information, which may have a very wide confidence interval

C. Rough order of magnitude cost estimating This process involves estimating the costs of labor, materials, equipment, and facilities for the various proposed solutions to an identified problem. It is typically used in the early stages of project planning to provide a preliminary estimate of costs​.

In this scenario, it indicates an early and broad estimation, which aligns with ROM (Rough Order of magnitude) cost estimating. A. Cost budgeting happens later when a more detailed financial breakdown is needed. B. Expert judgment is a technique used in various stages, but it is not a cost estimation process in itself. D. Scoping the project costs is not a formal process term in project management.

A. Cost budgeting

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.

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.