A company operates on a 2-year budgeting cycle. The project manager has been assigned a high-visibility project to deliver a brand new, innovative capability. While the requirements for the new capability are defined, the solution design is only beginning. The project manager's boss is concerned that the final solution will exceed the budget for the project. What should the project manager do next to anticipate the budget impacts of the solution?

Questions › Category: PMP › A company operates on a 2-year budgeting cycle. The project manager has been assigned a high-visibility project to deliver a brand new, innovative capability. While the requirements for the new capability are defined, the solution design is only beginning. The project manager’s boss is concerned that the final solution will exceed the budget for the project. What should the project manager do next to anticipate the budget impacts of the solution?

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A company operates on a 2-year budgeting cycle. The project manager has been assigned a high-visibility project to deliver a brand new, innovative capability. While the requirements for the new capability are defined, the solution design is only beginning. The project manager's boss is concerned that the final solution will exceed the budget for the project.
What should the project manager do next to anticipate the budget impacts of the solution?

A. Apply earned value techniques that compare planned to actual value delivered at key points in the project.

B. Develop a work breakdown structure (WBS) and perform activity-based cost estimating.

C. Perform scenario planning on each of the solution designs and incorporate estimates into the next budgeting cycle.

D. Consult colleagues at other companies and use historical information to predict the final cost.










Correct Answer: B

This question is in PMP exam
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