Analogous Cost Estimation in PMP

Analogous Cost Estimation is:

• a method in which top managers use their experience, historical information from similar projects and expert judgement to determine a total project cost or time estimation.
• often called "top-down" estimation since estimations are generated for top levels of the WBS and then apportioned downward through the levels of WBS.

Analogous Cost is used when:

• you hae a limited amount of detailed information about the project.
• you have a similar project to use for comparison.
• the work package owners preparing the estimations have the requisite expertise.