Topic > The Importance of Project Cost Management - 1117

For example, I wouldn't buy a cheaper tablet if it didn't have good battery life, a decent amount of memory, a larger screen, printing capabilities, or the ability to browse the Web navigate. That's why it's a good idea to use all the information you need to come up with a good cost estimate. Therefore, I will need to use the following types of cost estimating documents to start this tedious but important process. First, I would use a rough order of magnitude (ROM) estimate, especially because it will provide an approximation of the project cost. This is a great document to use in the early stages of the project, in order to create a project selection decision (Schwalbe, 2011). Although a ROM typically has a ratio of -50 to +100% accuracy, it is still the best method for estimating the actual project cost, early in the project. For example, a project may be 50% below or 100% above ROM. In non-technical language, this means that the undertaking may cost less or more than the expected cost of the project (Schwalbe,