Budget Estimate as per PMBOK

Submitted by manishpmp on Mon, 07/09/2012 - 14:35

Can someone pleas help me with the Budget Estimate as per PMBOK. Are the following correct.


ROM = +/- 50%


Budget Estmate =  -10% to 25%


Definitive Estimate = -5%  to 10%


Kindly let me know if these are correct to use in PMP exam.

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sspawar

Mon, 07/09/2012 - 16:33

What PMBOK SAYS is here:

The accuracy of a project estimate will increase as the project progresses through the project life cycle. Hence cost estimating is an iterative process from phase to phase.

For example, a project in the initiation phase could have a rough order of magnitude (ROM) estimate in the range of +/-50%.

Later in the project, as more information is known, estimates could narrow to a range of +/-10%.

In some organizations, there are guidelines for when such refinernents can be rnade and the degree of accuracy that is expected.

Other statements are irrelevant to PMP EXAM.

Regards

SSP