Samuel, a project manager, and Martha, his subordinate, are working on a project. In the budgeting phase, Samuel is responsible for estimating the costs for Level 1 tasks and Martha is responsible for estimating the costs for Level 2 tasks. While collating the data, Samuel finds that the total estimated cost for Level 1 tasks is much lower than the total estimated cost for Level 2 tasks. Which of the following is a reason for this discrepancy?
A) Subordinates tend to have more experience than higher management in allocating costs.
B) Project managers are naturally pessimistic and want to build in protection for everything that might possibly go wrong.
C) Subordinates are usually optimistic and never admit that details have been forgotten or that anything can or will go wrong.
D) Jobs always look easier, faster, and cheaper to the project manager than to the subordinates who have to do them.
E) Project managers and subordinates are often dishonest in their estimations.

Question

Quizplus · Accepted Answer

Jobs often appear simpler, quicker, and less costly to project managers than to the subordinates tasked with executing them. This perspective difference can lead to lower cost estimations by project managers for higher-level tasks compared to the more detailed and potentially higher cost estimations by subordinates for the tasks they are directly involved with.

Samuel, a Project Manager, and Martha, His Subordinate, Are Working