Estimating the costs of each activity is the second portion of proper project planning. You predict each activity ' s cost using standard techniques, which we' l l talk about shortly. You then translate that information into a budget that you can track while the project is under way.
Essentially, cost estimating is the process of predicting the cost associated with a given activity, while taking into consideration the assumptions and constraints associated with the project—both of which were outlined earlier in your project concept, charter, requirements, and scope formulation.
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