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 scenario describes a low initial estimate for the cost of the study tour, which is a common reason for a cost overrun. The professor advertised a price that was much lower than the realistic cost, likely to attract more students to sign up for the trip. However, once the students were committed and far from home, the professor could reveal the actual cost, which is much higher than the initial estimate.

There Was No Way That the Study Tour to Italy