Cost Engineering Terminology

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This recommended practice provides the basic meanings of terms, as they are used in the cost engineering field
described in AACE International’s Total Cost Management Framework. Some terms may have different meanings
when applied in fields other than cost engineering. Some terms may have different meanings for the various
disciplines within cost engineering. Multiple definitions are given for terms where applicable. Definitions specific to
each discipline are often introduced by identifying the relevant discipline—e.g., “In planning and scheduling,” “In
estimating and budgeting,” “In risk analysis,” etc.

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