Estimating using historical data from past similar projects (analogous estimating) is a best practice to prevent errors and improve accuracy in cost planning. It helps identify items or tasks that may be overlooked if only current project documentation is used.

According to the PMBOK® Guide – Seventh Edition, past project records and lessons learned are valuable tools for improving cost and scope planning.

Option A is a governance step but doesn’t improve estimation accuracy.

Option B addresses when to update but not how to improve the original estimate.

Option C (padding) is not best practice and may not be acceptable in cost-constrained projects.