Methods of Estimation MCQ with answer and solution

Concept

A detailed estimate is also called an item rate estimate, because each item's quantity is multiplied by its rate.

Formula

Cost of item = Quantity × Rate; Estimated cost = Σ (Quantity × Rate) + contingencies

Step-by-step solution

1. A detailed estimate finds the quantity of each item of work from the drawings. 2. Each quantity is multiplied by its unit rate to get the item cost. 3. Because it works item by item with rates, it is also called an item rate estimate. 4. So the item rate estimate most closely resembles a detailed estimate. Answer is C.

Explanation

A detailed estimate takes every item of work, measures its quantity, and multiplies it by the item rate. That is why it is also known as an item rate estimate. Other estimates are either approximate or cover only part of the work.

Why the other options are wrong

A: An annual maintenance estimate covers only yearly repair work, not the full project. B: A rough estimate is an approximate cost made without detailed measurements. D: A quantity estimate lists only quantities, without rates and costs.

Shortcut

Detailed estimate = Item rate estimate.

Common mistake

Choosing quantity estimate, but it gives only quantities and no costs.