Question

Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction. Which of the following factors is illustrated in this situation?A. Padding estimatesB. Planning horizonC. Project structureD. PeopleE. Organization culture

Answer 1

Answer:A. Padding estimates

Explanation:

Padding estimates means increasing your estimated cost or effort to cover for the unexpected or the just in case something doesn't go according to your plan. Usually you never know how the project will go, anything can happen whilst you busy with it hence a person may end up saying a project will end in three weeks but their original estimated is that it will end in 2 weeks but because they may be some delays you want to live a room for some setback that may arise along the way. This is padding estimates.

Janet is doing the same when she is living a room for the unexpected or just in case management insists on reducing forecasts by 20 percent as they typically do, she increases her estimates to allow for that reduction. This is padding estimates.