What is Cost Estimation?
Cost estimation involves forecasting the cost of a progressing project within the defined scope. Cost estimation is the primary element in cost management which broadly monitors, plans, and controls a project's fiscal estimates. It can be done manually or with the help of cost estimating software . The overall approximate cost of the total project is calculated to sanction the project budget and manage the costs. Different techniques are used to approximate the project's financial feasibility cost, monitor the spending, and budget the project. An accurately estimated price is a crucial determining factor for taking the project into account; after all, this is the primary factor determining the project's eventual scope, maintaining the project's financial feasibility by avoiding cost overruns. Cost estimates of a project are flexible and are revised as the project progresses. The initial approximation helps prepare the project baseline, which includes the milestone-bas