PMP Exam Question 78

Aligned with PMBOK 6th Edition®.

In a monthly review with the project sponsor, you, the project manager, are required to explain all the funds authorized to execute the project including management reserves. Where can you find this information?

A. Cost management plan.
B. Cost estimates.
C. Cost baseline.
D. Project budget.

November 9, 2019

3 responses on "PMP Exam Question 78"

  1. PMP Solution 78

    Cost management plan establishes how the costs will be planned, structured, and controlled, so this can not be the right choice. On the other hand, a cost estimate is a quantitative assessment of the likely costs for resources required to complete the activity. Nonetheless, project budget includes all the funds authorized to execute the project. The cost baseline is the approved version of the time-phased project budget that includes contingency reserves, but excludes management reserves. Therefore, the right choice for this question is D. [PMBOK 6th edition, Page 248] [Project Cost Management]

    Cheers

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