What cost estimating technique would be most appropriate for
What cost estimating technique would be most appropriate for the following situation? The Marine Corps is examining several early alternatives to meet a particular mission need. To support that effort, they need some high-level (i.e., less accurate) cost estimates to weigh against operational effectiveness. The program is very early in the life cycle. Only one similar historical system exists for each alternative approach being considered.
| Actual Costs |
| Parametric |
| Analogy |
| Engineering |
Solution
Analogy method
In the analogy method, the cost of a new item is calculated by starting with the cost of one or more similar existing items, then adjusting this cost to take into account the differences between the existing item and the new item.