Which Estimating Technique Uses an Algorithm to Calculate Cost or Duration

question 3

Multiple Choice

Which estimating technique uses an algorithm to calculate cost or duration based on historical data and other project parameters?

• A) empirical estimating
• B) parametric estimating
• C) grass roots estimating
• D) analogous estimating

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Definitions:

Gross Profit

Gross profit is the difference between sales revenue and the cost of goods sold (COGS), showing how efficiently a company produces its products.

Raw Materials Inventory

Stocks of the basic materials and components that are used in production but have not yet been processed or used in the manufacturing process.

Direct Labour

Work specifically conducted by employees directly involved in the manufacturing process of a product.

Manufacturing Overhead

All manufacturing costs excluding direct labor and direct materials, such as utilities and rent for production facilities.