Software Cost Estimation

Value may also be expressed as a straightforward relationship between perceived benefits and perceived costs: Value = Benefits / Cost. The customers get benefits and assume costs. Value is thus subjective (i.e., a function of consumers' estimation) and relational (i.e., both benefits and cost must be positive values).

There are numerous specific techniques for generating budgets, estimates and plans.  The techniques can be sorted into three basic categories.  Hybrids exist that the leverage components of each.

The purpose of this step is to identify: Residual Defect Estimation Model, Test Estimation Model:, COCOMO MODEL, PUTNAM'S MODEL and STATISTICAL MODEL

The purpose of this step is to identify the software project risks, to assess their impact on the cost estimate, and to revise the estimates based on the impacts. Project risks affect all aspects of a software project: the organization, the personnel, the technology etc. One can distinguish between two types of risks:

When a company or individual looks to estimate the cost of software development, inevitably questions like “How much?” and “How long?” are asked.