Cost Estimation

What determines cost estimation?

• Effort

• Hardware cost

• Travel Expenses

• Training costs

• Communication cost and other cost factors

What is software cost estimation?

What is estimation?

Is the process of finding an estimate or approximation, which is a value that can be used for some purpose even if input data may be incomplete, uncertain or unstable.

What is software cost estimation?

Estimation of how much money, effort, resources and time will take to build a specific software based system or product.

Why is it important?

• Known budget, better for planning

• Software is very expensive to build, its reasonable to develop an estimation before you start creating the software.