Evaluate and discuss an example for preparing ROM, budgetary, and definitive cost estimates for a project. Give an example of using each of the following techniques for creating a cost estimate:As an example, a ROM estimate for providing new laptops for 100 people might be $250,000. A budgetary estimate would break down the estimate to include hardware, software, detailed assumptions (e.g., whether the estimate is just for the purchase cost or for a 2–4-year project life), and so on. A definitive estimate would be much more detailed and accurate than a rough estimate or budgetary estimate and would include vendor quotes.

Evaluate and discuss an example for preparing ROM, budgetary, and definitive cost estimates for a project. Give an example of using each of the following techniques for creating a cost estimate:As an example, a ROM estimate for providing new laptops for 100 people might be $250,000. A budgetary estimate would break down the estimate to include hardware, software, detailed assumptions (e.g., whether the estimate is just for the purchase cost or for a 2–4-year project life), and so on. A definitive estimate would be much more detailed and accurate than a rough estimate or budgetary estimate and would include vendor quotes. When considering costing risks, miscalculations can lead to reductions in scope and quality.