Which cost estimating approach relies on detailed engineering data and product/process specifics?

Which cost estimating approach relies on detailed engineering data and product/process specifics?

• A. Analogy
• B. Parametric
• C. Delphi
• D. Engineering Approach

Answer: (D)

The main idea here is that a cost estimate built from precise engineering data and exact product/process details comes from the engineering approach. This method is bottom-up, starting with the actual design information—drawings, bills of materials, process specifications, tooling, labor requirements, and production steps—and then calculating costs for each component or activity before summing them up to a total. Because you’re using specific quantities and processes, the estimate reflects the true cost potential more closely than other methods. It’s the most accurate when complete design and manufacturing details are available, though it takes more time and data to produce. In contrast, analogy uses costs from a similar project, which can be quicker but less tied to the current design; parametric relies on high-level relationships or cost drivers to estimate costs via equations; and the Delphi method uses iterative expert judgments to converge on an estimate.

The main idea here is that a cost estimate built from precise engineering data and exact product/process details comes from the engineering approach. This method is bottom-up, starting with the actual design information—drawings, bills of materials, process specifications, tooling, labor requirements, and production steps—and then calculating costs for each component or activity before summing them up to a total. Because you’re using specific quantities and processes, the estimate reflects the true cost potential more closely than other methods. It’s the most accurate when complete design and manufacturing details are available, though it takes more time and data to produce.

In contrast, analogy uses costs from a similar project, which can be quicker but less tied to the current design; parametric relies on high-level relationships or cost drivers to estimate costs via equations; and the Delphi method uses iterative expert judgments to converge on an estimate.