What can the cost management plan establish?

The correct answer is D. Control thresholds. The cost management plan establishes the policies, procedures, and guidelines for managing project costs. One of its key components is control thresholds - the acceptable variance limits (e.g., ±10%) that trigger corrective action when breached. Option A (cost baseline) is an…

Predictive, Plan-Based Methodologies

Question

What can the cost management plan establish?

Options

ACost baseline
BCost estimates
CBasis of estimates
DControl thresholds

How the community answered

(55 responses)

A
4% (2)
B
7% (4)
C
2% (1)
D
87% (48)

Explanation

The cost management plan establishes the policies, procedures, and guidelines for managing project costs. One of its key components is control thresholds - the acceptable variance limits (e.g., ±10%) that trigger corrective action when breached. Option A (cost baseline) is an output of the Determine Budget process, not the cost management plan. Option B (cost estimates) are outputs of the Estimate Costs process. Option C (basis of estimates) is also an output of the Estimate Costs process that documents the rationale behind cost estimates. The cost management plan defines HOW costs will be managed and controlled - including the thresholds that determine when variances require a response.

Topics

#Cost Management Plan#Control Thresholds#Project Planning#PMBOK

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