PMP Exam Question 27

Aligned with PMBOK 6th Edition®.

In a cryptocurrency project, there is a high risk that the developed technology can not be applied to make payments with current phones. Dave, the project manager, has a response risk strategy planned and money allocated in the cost baseline to face that situation. How would you call that money allocated?

A. Reserve.

B. Management Reserve.

C. Contingency Reserve.

D. Contingent Response Strategy.

1 responses on "PMP Exam Question 27"

  1. PMP Solution 27

    According to PMBOK 6th Edition, a Reserve is a provision in the project management plan to mitigate cost and/or schedule risk. Often used with a modifier (e.g., management reserve, contingency reserve) to provide further detail on what types of risk are meant to be mitigated.
    Management Reserve is the amount of the project budget or project schedule held outside of the performance measurement baseline (PMB) for management control purposes, that is reserved for unforeseen work that is within scope of the project.
    Contingent Response Strategies are responses provided which may be used in the event that a specific trigger occurs. On the other hand, Contingency Reserve is time or money allocated in the schedule or cost baseline for known risks with active response strategies. Therefore, the most suitable term and right solution is C. [PMBOK 6th edition, Page 702] [Project Cost Management].

    Cheers

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