Cost Estimation
Cost estimation is a systematic process used in software development and project management to predict the financial resources required to complete a project, including time, effort, and materials. It involves analyzing project requirements, historical data, and constraints to produce accurate forecasts that inform budgeting, scheduling, and decision-making. This skill is critical for ensuring projects are financially viable and aligned with business objectives.
Developers should learn cost estimation to improve project planning, resource allocation, and stakeholder communication, especially in roles involving project management or leadership. It is essential for creating realistic budgets, avoiding cost overruns, and justifying investments in software development initiatives. Use cases include agile sprint planning, proposal writing for client projects, and internal resource forecasting for tech teams.