Which of the following is a TRUE statement about estimating?

The statement about estimating that holds true is that both overestimating and underestimating costs could have disastrous consequences. This perspective recognizes the critical nature of accurate cost estimation in project management and budgeting.

Overestimating costs can deter potential clients or stakeholders who might perceive the project as too expensive, leading to lost opportunities. Conversely, underestimating can result in insufficient funds to complete the project, causing delays, reduced quality, or even project failure. Therefore, it is essential for project managers and estimators to strive for accuracy and thoroughness in their cost assessments to ensure financial viability and success.

This understanding highlights the intricate balance required in estimation practices, emphasizing that both extremes can create significant risks and impacts on the outcome of a project. Accurate estimates facilitate informed decision-making, budgeting, and planning, whereas inaccuracies can compromise the entire endeavor.