Which cost estimating technique uses detailed engineering data to estimate costs?

Which cost estimating technique uses detailed engineering data to estimate costs?

• A. Parametric cost estimating technique
• B. Analogy cost estimating technique
• C. Engineering cost estimating technique
• D. Actual Costs

Answer: (C)

When you have detailed engineering data, you perform a bottom-up, or detailed, cost estimate. This approach breaks the project into specific components tied to the design—quantities from drawings, bills of materials, process steps—and applies unit costs (materials, labor, equipment, overhead) to each item, then sums them for the total. The result leverages concrete design information, so it’s typically the most accurate among common methods, though it takes more time and effort to develop. Parametric estimating relies on formulas and historical data to estimate costs based on size, weight, or other variables, offering speed but less precision when designs change. Analogy estimating uses costs from a similar project to approximate the current one, which can be rough if there are differences. Actual costs refer to the real expenditures that have already occurred, not a forecasting technique.

When you have detailed engineering data, you perform a bottom-up, or detailed, cost estimate. This approach breaks the project into specific components tied to the design—quantities from drawings, bills of materials, process steps—and applies unit costs (materials, labor, equipment, overhead) to each item, then sums them for the total. The result leverages concrete design information, so it’s typically the most accurate among common methods, though it takes more time and effort to develop.

Parametric estimating relies on formulas and historical data to estimate costs based on size, weight, or other variables, offering speed but less precision when designs change. Analogy estimating uses costs from a similar project to approximate the current one, which can be rough if there are differences. Actual costs refer to the real expenditures that have already occurred, not a forecasting technique.