Estimating activity resources is a function of cost management.

• A. True
• B. False
• C. Not Sure
• D. Not Applicable

Answer: (A)

Estimating activity resources is tied to cost management because knowing what resources an activity needs (people, equipment, materials) and in what quantities directly determines the costs you will incur. This estimation provides the inputs for the cost estimates, which in turn feed the cost baseline and budget. Without accurately forecasting resource needs, you can’t produce reliable cost estimates, making the overall cost management process incomplete.

For example, if an activity is planned to require three software engineers for two weeks and two servers for that period, those resource quantities translate into labor costs and equipment costs, which are then used to estimate total costs. This connection shows why estimating resources supports cost management.

While resource estimation is primarily about identifying and sizing needed resources, its outputs are essential inputs for estimating costs and managing the budget, so the statement aligns with how cost management uses resource information.