Estimating schedule activity costs

Submitted by raza82 on Sun, 02/03/2013 - 20:21

 In your project, you are estimating schedule activity costs by determining 

the unit cost rates, e.g., staff costs per hour. In this context, 
which of the following cannot be used to determine resource cost rates?
 
Choice 1 Statistical relationship between historical data and other variables
 
Choice 2 Gathering quotes
 
Choice 3 Standard rates with escalation factors (for contracts)
 
Choice 4 Commercial databases or seller published price lists
 
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PMP / CAPM exam Question bank
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daso

Sun, 02/03/2013 - 20:53

Answer should be 4

what the heck are commercial databases?

sspawar

Sun, 02/03/2013 - 23:51

 IMO

OPTION 1, IS ODD

raza82

Mon, 02/04/2013 - 12:30

can u explain why?

I think Option A is saying about Parametric Estimating which is a tool of th Estimate Cost Process.... 

sspawar

Mon, 02/04/2013 - 13:56

 in this question he is talking to collect rates, and all 3 options  are sources of coolection, while this option is talking on deriving the cost and perhaps not the rates.

though what is your guess.

raza82

Mon, 02/04/2013 - 15:11

The question is saying you are in the "estimating schedule activity costs"

 

and naturally what comes to mind is the tools of the Process which is "Parametric Estimating"

 

so I choose 1...

sspawar

Tue, 02/05/2013 - 00:39

 q asking which option can not be used - to determine cost rates?

what is ans and explanation.

raza82

Tue, 02/05/2013 - 04:55

Explaination:

Parametric estimating uses a statistical relationship between historical data and

other variables. Parametric estimating uses unit cost rates in calculations, but

doesn’t determine those rates.  

 

But since the question is asking about Etismate Cost Process and Parametric Analysis is a part of this process option 1 sounds not the right answer.

I chosed Gathering Quotes, since it is more of A conduct Procurement process, but got it wrong

 

Alpha_romeo0

Tue, 02/05/2013 - 07:40

Here I feel the question is determining the cost of a "Human Resource".

So perhaps you need to get a HR factor accounted for in this activity.

Choice 2 - a quote can be used, given the number of personnel and their per hour etc

Choice 3 is definate as the escalation factors and contracts

Choice 4 is also definate as Commercial Databases give the "going rate" for the types of staff depending on job description.

 

So Choice 1 is the answer as Statistics and "other" data give it away as we are looking for a particular type of data. Stats would be used in Analogous estimation and looks at multiple factos. 

akekokung

Tue, 02/05/2013 - 08:46

Option 1 is the last answer.

aval

Tue, 02/05/2013 - 10:54

The question is asking for determining Cost Rates (for e.g. hourly rates for different types of resources), and not cost estimation process.  I think answer should be 1.