Activity Duration Estimate Question

All of the following situations will cause schedule activity duration estimates to directly influence the cost estimates except:

a) When the project budget includes cost of financing components

b) when planned components and control accounts are not adequately defined in the WBS

c) When seasonal cost variations are involved

d) When union labor with regularly expiring collective bargaining agreements are involved

admin's picture

Should be A, since the components financing is not an activity. and change in component pricing will not impact activity duraiton estimates

 IMO

Duration estimates - in option A is required as long loan will run, and it will impact cost estimate

like that in option c and d - duration estimates will impact the cost estimate.

But in case of B - CONTROL ACCOUNT or PLANNED COMPONENTS do not have any duration which can increase or decrease the appropriateness or can  influence estimate costs, in respect of time. 

Agree with A as well, but need further clarification as to the meaning of D.

If collective bargaining with labor are regularly expiring, how would "schedule duration estimate" influence "cost estimate?"

My answer was D however explaination given is

Estimate Act. Duration will affect cost estimates when the project budget includes an allowance for cost of financing, such as interest rate charges. In addition, activity duration estimates will impact cost estimates when resources are applied per unit of time for duration of schedule activity.

Furthermore schedule activity duration estimates may affect cost estimate that have time sensitive cost components such as materials with seasonal cost variations or when union labor with regularly expiring collective bargaining agreements are involved.