A minimum viable product (MVP) is a product with the minimum features that can deliver value to the customer and validate the product concept1. To estimate the cost of an MVP, the project manager can use agile methods such as user story points and forecasting. User story points are a relative measure of the size and complexity of a user story, which is a description of a feature from the user’s perspective2. Forecasting is a technique that uses historical data and trends to project future outcomes3. By estimating the user story points for each feature of the MVP and using forecasting to calculate the time and resources needed, the project manager can report a realistic and accurate budget for the MVP. This approach is more suitable than the other options because:

B. Determining the control accounts and using a top bottom estimate is a traditional method that is more applicable to large and complex projects with well-defined scope and requirements. It involves breaking down the project into smaller units and estimating the cost of each unit from the top level to the bottom level. This method may not be flexible enough to accommodate the changes and uncertainties that are common in MVP development.

C. Considering the cost performance index (CPI) based on earned value (EV) divided by costs is a method that is used to measure the efficiency of the project performance. It compares the value of the work completed with the actual cost incurred. This method is not relevant for estimating the cost of an MVP, as it requires the project to be already in progress and have a baseline plan to compare with.

D. Calculating the budget at completion (BAC) based on the completed and planned features is a method that is used to estimate the total cost of the project at the end of its life cycle. It involves adding up the actual cost of the work done and the estimated cost of the remaining work. This method is not appropriate for estimating the cost of an MVP, as it assumes that the scope and features of the project are fixed and known in advance, which is not the case for MVP development.