Estimating Practice Exam

In the price per unit method, what is calculated for each project?

1. The total cost

2. The number of selected units

3. The gross floor area

4. The volume of the building

The correct answer is: The number of selected units

In the price per unit method, the primary focus is on determining the cost associated with a typical unit or measurement related to the project. This could involve calculating costs based on units such as square footage or specific components relevant to the project. The number of selected units is crucial as it directly influences the overall pricing calculation; by knowing how many units are involved in the project, estimators can apply the price per unit to arrive at a total estimated cost. This method is particularly useful because it allows for quick calculations and easier comparisons across different projects. For instance, if the price per unit is established based on past projects or industry standards, multiplying that price by the number of selected units gives an efficient way to estimate total costs. In contrast, calculating the total cost would require comprehensive access to all expenses involved, while gross floor area and volume represent specific physical dimensions rather than a direct cost estimation method, which is why those options do not align with the core principle of the price per unit calculation.