Exam PgMP topic 1 question 109 discussion

B is correct answer The cost estimating approach that uses the Work Breakdown Structure (WBS) to create a cost estimate is called Definitive Estimating. Definitive Estimating: Detailed Estimates: This approach involves creating detailed and accurate cost estimates for each work package within the WBS. Bottom-Up Approach: While the term "bottom-up" is often associated with definitive estimating, the key is that it uses detailed information available from the WBS. High Accuracy: Definitive estimates are usually within a range of -5% to +10% accuracy, making them highly reliable for budgeting and cost control.

B. Definitive Estimating: This approach involves creating a detailed cost estimate based on a thorough and detailed work breakdown structure (WBS). The WBS breaks down the total scope of work for the project into smaller, more manageable components, and costs are estimated for each of these components. This method is considered more accurate and reliable as it's based on detailed information about what needs to be done.

WBS is bottom up

The definitive estimate is the most accurate estimate for the amount of work and resources needed to complete the project. Bottom Up estimate techniques for WBS