Program Management Professional (PgMP) — Question 94

What cost estimating approach uses the work breakdown structure to create a cost estimate?

Answer options

• A. Analogous
• B. Definitive
• C. Top down
• D. Parametric

Correct answer: B

Explanation

The correct answer is B, Definitive, as it relies on a detailed work breakdown structure to provide an accurate cost estimate. Analogous and parametric methods are based on historical data or statistical relationships, while top-down estimating does not utilize a detailed breakdown of work.