LCC Analysis: reasoning by comparing the proposed project with one or more completed projects that are judged to be similar, with corrections added for known differences

LCC Analysis: reasoning by comparing the proposed project with one or more completed projects that are judged to be similar, with corrections added for known differences

• A. Design-to-Cost
• B. Agility
• C. Cost-Effectiveness Analysis
• D. Analogy

Answer: (D)

Reasoning by comparing the proposed project with similar completed projects and adjusting for known differences is called an analogy approach in life-cycle cost analysis. It relies on historical data from comparable programs to estimate the new project's LCC by identifying similarities and applying corrections for factors that differ, such as scope, technology, or inflation. This method helps ground estimates in real-world cost drivers observed in prior efforts, rather than relying solely on theoretical bottom-up calculations. Design-to-Cost targets the project to a predetermined cost, agility emphasizes adaptability rather than a specific estimation method, and cost-effectiveness analysis compares costs to outcomes to evaluate value. The described approach fits analogy because it leverages prior, similar cases to infer future costs.

Reasoning by comparing the proposed project with similar completed projects and adjusting for known differences is called an analogy approach in life-cycle cost analysis. It relies on historical data from comparable programs to estimate the new project's LCC by identifying similarities and applying corrections for factors that differ, such as scope, technology, or inflation. This method helps ground estimates in real-world cost drivers observed in prior efforts, rather than relying solely on theoretical bottom-up calculations. Design-to-Cost targets the project to a predetermined cost, agility emphasizes adaptability rather than a specific estimation method, and cost-effectiveness analysis compares costs to outcomes to evaluate value. The described approach fits analogy because it leverages prior, similar cases to infer future costs.