Exercise Figure 51 is a project WBS with cost apportioned by

Exercise Figure 5.1 is a project WBS with cost apportioned by percentages. If the total project cost is estimated to be $600,000, what are the estimated costs for the following deliverables?

a. Design

b. programming

c. In-house testing

What weaknesses are inherent in this estimating approach?

Please help with this problem. Also please show how you got your answer so these problems wont be an issue for me in the future. Thank you for your help!

Router systems project Cost: $600,000 Definitionn 0% Design 40% Implementation 50% Objectives 4% Requirements 6% In-house testing 40% Customer testing & revievw 0% Inputs 3% Programming 20% Outputs Files Interfaces 396 4% 10%

Solution

Total project cost 600000 Proportion Cost Definition 10% 60000 10% of total cost a Design 40% 240000 40% of total cost Implementation 50% 300000 50% of total cost Further we need to find out programming which is a sub activity of Design Proportion Input 3% 18000 So 3% of total cost Output 3% 18000 So 3% of total cost Files 4% 24000 So 4% of total cost Interfaces 10% 60000 So 10% of total cost b Programming 20% 120000 So 20% of total cost Further we need to find out in-house testing which is a sub activity of Implementation c Inhouse testing 40% 240000 So 40% of total cost Customer review and testing 10% 60000 So 10% of total cost