The estimated cost of an activity should be
A) padded to include contingency funds for all conceivable issue
B) reasonable and realistic
C) conservative to cover costs
D) optimistic and without contingency

Question

Quizplus · Accepted Answer

The estimated cost of an activity should be reasonable and realistic. While it's important to consider potential issues and include contingency funds, padding the estimate with all conceivable issues may lead to overestimating the cost and wasting resources. It's also important not to be too optimistic and underestimate the cost, but rather make a reasonable estimate based on past experience and available information.

The Estimated Cost of an Activity Should Be