Exam CAPM topic 1 question 295 discussion

Actual exam question from PMI's CAPM

Question #: 295
Topic #: 1

A project team is working on relocating offices to another building and providing new furniture. The new furniture was purchased from an international vendor. The price was negotiated in a foreign currency, and due to changes in the exchange rate, the cost has increased by 10%. There is no contingency in the project budget.

What should the project manager do?

A. Escalate this issue to the procurement team.
B. Escalate this issue to the project sponsor.
C. Escalate this issue to the chief financial officer (CFO).
D. Escalate this issue to the project management office (PMO).

Show Suggested Answer

Suggested Answer: B 🗳️

by bikelepo at April 5, 2025, 3:20 a.m.

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JesseChou_123

1 month, 2 weeks ago

Selected Answer: B

Why the other options are incorrect: A. Escalate to the procurement team: ❌ The procurement team might help negotiate terms or manage vendor relations, but they don’t control the project budget or authorize additional spending. C. Escalate to the CFO: ❌ The CFO oversees organizational finances, but would typically not be involved in day-to-day project budget decisions—unless the project sponsor involves them. D. Escalate to the PMO: ❌ The PMO provides governance and methodology support, but it’s not responsible for approving additional project funding.

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