Group exercise – week 08

 Submit your work in the folder: Dropbox for Group Exercises/Week 08 on the google
drive.

Group name:
Member’s names: Nguyễn Hoàng Chương – 22011977
Lê Quang Thắng – 2183064
Hoàng Khánh Huy - 2182947

I. Group exercise
 Deadline: at 23h55 on May 25th, 2022
 Task:
1) Discuss why many IT professionals may overlook project cost management and
how this might affect the ability to complete projects within budget.
One of the major aspects as to why an IT professional could have or might get to
overlook the project cost management is having not having a proper requirement
in place or even having an undefined requirement at the project's initial phases.
Estimating the various costs that go into an IT project is extremely difficult to do
from the start. This is an important factor to consider when analyzing the success
of cost management practices on a particular project, because final costs are
measured against the initial estimates.
2) What is meant by a sunk cost? Give examples of typical sunk costs for an IT
project as well as examples from your personal life. Why is it difficult for people
to ignore them when they should?
Sunk cost, in economics and finance, a cost that has already been incurred and
that cannot be recovered.
Ex: Some people failed to create interest from their previous failed project, so
they decide to invest more money from their succeeded project into the failed one
in order to squeeze some last money out of the failed project. This, typically, is
because they don’t want their first investment to be wasted, and they usually end
up digging themselves a bigger hole.
3) Give examples of when you would prepare rough order of magnitude (ROM),
budgetary, and definitive cost estimates for an IT project. Give an example of
how you would use each of the following techniques for creating a cost estimate:
analogous, parametric, and bottom-up.?
An uneven order of the magnitude estimate for providing the new laptops for 100
people might be $240,000. A budgetary estimation would break down estimate to
the include hardware, software, thorough assumptions (for example, if estimate is
just for the purchase cost or is for a 2 to 4 year project life), and consequently on.
The definitive estimate would be the much more detailed and exact after that a
rough estimation or budgetary estimation and would include the vendor quotes.
Using the example of the providing new laptops for 110 people, one possible
response for the examples of each type of the estimating techniques follows:
Analogous estimate: You could research like organizations that the recently
purchased about the similar..