Cost Estimation

Running Head : COSTS Cost Estimation

Organizations these days are striving hard to cut costs , increase profits , and increase efficiency , so that they can remain in the competition and survive in their respective industries . The era of globalization has resulted in the flourishing of immense competition that is why the organizations have become competitive and try to overtake each other . The would highlight on the importance of cost estimation in project planning , and how it is linked with the Work Breakdown Structure and project schedule

Since each and every project for an

organization has grown its own importance in terms of investment , feasibility , growth , and success Therefore , the companies should reap well if they invest in a particular project and this can be done by conducting research and doing cost-benefit analysis . Finance departments of many firms conduct such analysis and try bringing some models into action to determine the feasibility and soundness of a given project or projects over each other . They tend to find Net Present Value of a particular project which would tell them that how much they the current value for a project is in terms of profitability and positivity (Brigham Houston , 2003

A company or any of its department cannot simple think of a project and go after it in fact , they should have an idea about how much the costs will incur and for how long , and what would be the impacts over the budget of the company . Cost estimation let the mangers know about...