Explain the significance that data accuracy can have in cost estimating.

What will be an ideal response?

This answer should be obvious to the student if they understand the concept of
how important cost estimating is in the overall project budget process. Inaccurate
data will establish the BAC incorrectly and will be used as an inaccurate baseline
to track actual costs. The unfortunate reality is that the project might actually be
doing fine cost wise, but will appear off as the baseline is not accurate, and the
project manager will try to make corrections that are not needed.