Chapter 2 (p.14) of the PMI Practice Standard for Project Estimating (2011) and Chapter 1 (p.6) of the GAO Cost Estimating and Assessment Guide (2009) list several characteristics of good estimating practices. Using this list, comment on each characteristic in the context of estimates prepared by your organization.

Describe the differences between direct and indirect costs. Why is it important for a project manager to understand the impact of indirect costs on his/her project? Describe the mechanism for allocating indirect costs allocated to projects in your organization.