The correct answer is D. cost estimation.
Cost estimation is the process of determining the cost of a product or service before it is produced or delivered. It is a critical part of business planning and helps to ensure that projects are completed on time and within budget.
There are a number of different methods for cost estimation, including bottom-up, top-down, and parametric estimation. Bottom-up estimation is the most accurate method, but it is also the most time-consuming. Top-down estimation is less accurate, but it is faster and easier to use. Parametric estimation is a hybrid of bottom-up and top-down estimation, and it is a good compromise between accuracy and speed.
Cost estimation is an important part of project management, and it is essential for ensuring that projects are completed on time and within budget.
A. Cyclical factors are factors that occur on a regular basis, such as the seasons or the business cycle. They can affect costs, but they are not directly related to the success of cost reduction initiatives.
B. Indexed technique is a method of cost estimation that uses a price index to adjust for inflation. It is a relatively simple method, but it is not very accurate.
C. Price estimation is the process of determining the price of a product or service. It is not directly related to the success of cost reduction initiatives.