Which statement best describes the Should-Cost and Will-Cost concepts?

Which statement best describes the Should-Cost and Will-Cost concepts?

• A. Should-Cost refers to life-cycle cost estimates used for budget input.
• B. Will-Cost refers to discrete and measurable items to save against Should-Cost.
• C. Should-Cost refers to specific discrete and measurable items or initiatives that can achieve savings against Will-Cost estimates.
• D. PMs develop, own, track and report against Will-Cost estimates at each milestone.

Answer: (C)

Should-Cost is the target cost defined from cost analysis and broken down into specific, discrete, and measurable actions or initiatives that you can implement to achieve savings. Will-Cost is the estimate of what the project will actually cost if you proceed with the current plan, supplier quotes, and market conditions. The best statement captures the idea that Should-Cost consists of concrete levers you can pull to realize savings against the Will-Cost baseline. The other descriptions either mischaracterize Should-Cost as a life-cycle cost, invert the savings relationship, or focus only on tracking Will-Cost without the actionable savings initiatives.

Should-Cost is the target cost defined from cost analysis and broken down into specific, discrete, and measurable actions or initiatives that you can implement to achieve savings. Will-Cost is the estimate of what the project will actually cost if you proceed with the current plan, supplier quotes, and market conditions. The best statement captures the idea that Should-Cost consists of concrete levers you can pull to realize savings against the Will-Cost baseline.

The other descriptions either mischaracterize Should-Cost as a life-cycle cost, invert the savings relationship, or focus only on tracking Will-Cost without the actionable savings initiatives.