Question

In which instance would you use a bottom-up estimation method?

a. You want to use your contractor's experience from prior projects to estimate the overall cost of the current project.

b. You need to allocate the overall budget estimate into subcategories.

c. You want to develop a project proposal for the food truck you are thinking about buying.

d. You need to develop a calendarized budget that shows the timing of the expenditures.

Answer 1

A bottom-up estimation method is best utilized when one needs to allocate an overall budget into detailed subcategories and when precise, detailed budgeting is needed, such as in setting up a food truck.

Step-by-step explanation:

You would use a bottom-up estimation method when you need to allocate the overall budget estimate into subcategories. Bottom-up estimating involves making detailed cost estimates for each component or task involved in a project and then totaling them to determine an overall project estimate. This method is particularly useful when precise, detail-oriented budgeting is required and when the costs and tasks can be reliably identified. For example, it is often used in construction or manufacturing where individual parts or tasks can be costed in detail. Another scenario could be your case of developing a detailed project proposal for a food truck, wherein you'd identify all the necessary components and their costs to come up with a total investment figure.