What data should be collected for a historical cost analysis?

To conduct a historical cost analysis, the most relevant data to collect is costs from completed projects. This data provides actual expenses incurred during previous projects, enabling evaluators to gain insights into spending patterns, resource utilization, and cost drivers. By analyzing historical costs, estimators can develop more accurate future project estimates, improve project budgeting, and identify areas for cost control and efficiency.

This method involves looking back at real data instead of projected or theoretical metrics. Future project estimates or current supplier rates would not provide the retrospective insights necessary for historical cost analysis, as they involve predictions or current pricing that may not represent actual past expenditures. Market trend analysis, while helpful for understanding broader economic conditions, does not focus on specific project costs, which are essential for conducting detailed historical cost analysis.