Janet is forecasting how much money her department needs to support a new project.She estimates that two people and $25,000 in expenses will cover her needs.Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction.Which of the following factors is illustrated in this situation?
A)Padding estimates
B)Planning horizon
C)Project structure
D)People
E)Organization culture

Question

Quizplus · Accepted Answer

In work situations where we are asked for time and cost estimates, most of us are inclined to add a little padding to increase the probability and reduce the risk of being late.If everyone at all levels of the project adds a little padding to reduce risk, the project duration and cost are seriously overstated.

Janet Is Forecasting How Much Money Her Department Needs to Support