The identification of cost drivers is perhaps the most important step in developing the cost estimate because:
A) It is the first step in cost estimation.
B) It is the final step in cost estimation.
C) There may be a number of relevant drivers, some not immediately obvious.
D) The other steps are easier to execute.
E) It requires much more time than the other steps.

Question

Quizplus · Accepted Answer

Identifying cost drivers is important because there may be relevant drivers that are not immediately obvious. This step helps to ensure that all significant factors that affect the cost are taken into consideration, resulting in a more accurate cost estimate. The other options presented in the question (A, B, D, and E) are not accurate because they either overstate or understate the importance of identifying cost drivers in the cost estimation process.

The Identification of Cost Drivers Is Perhaps the Most Important