CBAP · Question #185
Which of the following defines how the project will be estimated, budgeted, and how changes to cost will be managed?
The correct answer is A. Cost management plan. The cost management plan is a project planning document that defines the approach for estimating, budgeting, and controlling project costs throughout the project lifecycle.
Question
Which of the following defines how the project will be estimated, budgeted, and how changes to cost will be managed?
Options
- ACost management plan
- BCost variance reports
- CControl chart
- DCoercive power
How the community answered
(46 responses)- A76% (35)
- B2% (1)
- C15% (7)
- D7% (3)
Why each option
The cost management plan is a project planning document that defines the approach for estimating, budgeting, and controlling project costs throughout the project lifecycle.
The cost management plan is a component of the project management plan that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs. It directly addresses how costs will be estimated, how the budget will be structured, and how cost changes will be monitored and controlled.
Cost variance reports are outputs used to measure the difference between actual and planned costs, not a document that defines how cost management will be performed.
A control chart is a quality management tool used to monitor process stability over time, not a planning document for cost management.
Coercive power is a leadership concept referring to the ability to penalize or force compliance, which has no relation to cost planning or management.
Concept tested: Project cost management plan definition
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
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