The first thing the project manager should do in this situation is to hold a meeting with the team to discuss alternatives (Option C). The team should come together to brainstorm ideas on how to solve the problem while balancing the budget.
It is important to involve the team in finding a solution because they are the ones who are most familiar with the project and can provide valuable insights. This also gives the team a sense of ownership of the project and increases their commitment to finding a solution.
If the team is unable to identify a viable alternative, the project manager can then escalate the issue to the project sponsor for resolution (Option A). Removing the deliverable from the project scope (Option D) or holding the team accountable and asking for an immediate solution (Option B) should not be the first course of action as they do not involve finding a solution that supports the project objectives.
You are correct it may be an option but in most of the PMP exam questions you want to pick the first option if not specified when, explicitly. so first would be to collaborate with the team first to figure out options.
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