Exam PMP topic 1 question 1343 discussion

C. Verified applicable budget inputs related to this project

C is correct

By verifying applicable budget inputs related to the project, the project manager can ensure that the cost estimates are accurate and reflect current conditions. This proactive approach helps in setting realistic project expectations and avoids discrepancies between planned and actual costs.

C is the answer. Prioritize options Evaluate and analyze the problem to determine root cause Review the plan Hold meetings

To avoid the situation where the baseline costs of a project are much higher than expected, the project manager could have taken the following action: B. Determined a budget reserve for this project. Here’s why this option is the most appropriate: Budget Reserve: A budget reserve, also known as contingency reserve, is set aside to cover unforeseen costs and risks that may arise during the project execution. By determining a budget reserve upfront, the project manager can account for potential cost overruns or unexpected expenses that may not have been anticipated when baselining the project. Managing Uncertainty: Projects inherently involve uncertainty, and even if the new project is a replication of a previous project, various factors could lead to cost variations over time (e.g., inflation, changes in resource costs, availability of materials). A budget reserve helps in managing this uncertainty by providing a cushion against cost increases.