There was no way that the study tour to Italy could cost only $1500 for 14 days and 13 nights and include all transportation,meals and hotels,but the smarmy professor knew that students would balk at a higher advertised price.Once they were thousands of miles away from home in a country where none of them spoke the language it would be easier to tell them about unanticipated charges and approach the more realistic price of $3500 per person.This type of:
A)specification change is a common reason for a cost overrun.
B)lack of definition is a common reason for a cost overrun.
C)low initial estimate is a common reason for a cost overrun.
D)unexpected technical difficulty is a common reason for a cost overrun.

Question

Quizplus · Accepted Answer

The given scenario describes a low initial estimate as a common reason for a cost overrun, as the initial advertised price of $1500 for the study tour to Italy was too low and did not reflect the actual cost of transportation, meals, and hotels. This resulted in the professor having to approach the more realistic price of $3500 per person once the students were already committed and in a vulnerable position.

There Was No Way That the Study Tour to Italy