This document discusses using function points to estimate the cost and time required for a software project. It provides an example of estimating a program for a phone order company. The example counts the function points for the program's inputs, outputs, files and queries, then converts this to lines of code and staff hours using standard metrics. Finally, it calculates the estimated cost for the project based on typical programmer salaries. The document advocates that function point analysis provides a more accurate estimation approach than just comparing to past similar projects.