PMI PMP Project Management

Answer: b - This is best represented by life cycle costing, which looks at a project’s total cost over its lifecycle, instead of job cost through deployment only. Value analysis looks at ways to do the same work for less. Bottom-up estimating brings together all of a project’s incremental estimates and summarizes them into one large estimate.

Key Takeaway: A project manager who can properly articulate life cycle costing is worth his or her weight in gold, and improved future stock price performance. Poor quality increases down the line costs, increasing life cycle cost.