Which LCC analysis method estimates costs based on the overall characteristics of the project at the top level of the architecture?

Which LCC analysis method estimates costs based on the overall characteristics of the project at the top level of the architecture?

• A. Expert Judgement
• B. Parametric
• C. Parkinsonian technique
• D. Top down

Answer: (D)

Top-down life-cycle cost estimation starts from the whole system and uses high-level, top-level characteristics of the project—like overall size, complexity, and expected life—to estimate the total cost without detailing every component. This approach is ideal when you’re in the early design stages and you need a quick, architecture-wide view of cost, allowing you to compare options before detailed design work begins. Expert judgment can inform early numbers but isn’t defined by the top-level architectural view. Parametric methods do use high-level drivers, but they rely on a formal mathematical relationship, which is a more structured form of estimation. The Parkinsonian technique isn’t a standard method for LCC estimation.

Top-down life-cycle cost estimation starts from the whole system and uses high-level, top-level characteristics of the project—like overall size, complexity, and expected life—to estimate the total cost without detailing every component. This approach is ideal when you’re in the early design stages and you need a quick, architecture-wide view of cost, allowing you to compare options before detailed design work begins. Expert judgment can inform early numbers but isn’t defined by the top-level architectural view. Parametric methods do use high-level drivers, but they rely on a formal mathematical relationship, which is a more structured form of estimation. The Parkinsonian technique isn’t a standard method for LCC estimation.